Oslo — Akobo Minerals (Euronext Oslo – “AKOBO”), the Scandinavian-based Ethiopian gold exploration and boutique mining company, today announces that it has signed a mandate letter (the “Mandate Letter”) with an international debt arranger for a contemplated loan of up to USD 8 million (the “Loan”).
Pursuant to the Mandate Letter, the intention is to complete all conditions precedent, including a customary due diligence, site visit and agreeing on relevant documentation prior to entering into the final loan agreement. Further, it is expected that Akobo Minerals will grant the lender warrants representing 2.0% of its equity, with a strike price equal to the Akobo Mineral’s share price on the Mandate Letter signing date, where such warrants will vest immediately. The contemplated Loan is expected to provide Akobo Minerals with sufficient funding to complete its mining development and start production in Q1 2023.
The Mandate Letter is not a binding loan agreement and there can be no guarantees that a final loan agreement will be entered into and/or that the Loan will be funded to Akobo Minerals.
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