By: African mining market

Akobo Minerals AB (publ), the Scandinavian-based gold producer operating in Ethiopia, announces that it has completed its financial restructuring by amending and restating in full the terms of the loan agreement with Monetary Metals (“MM”).

The amended and restated terms of the MM loan agreement, following the Memorandum of Understanding announced on 13 May 2025, are now formally in place with all conditions lifted. Key terms of the amended and restated terms include:

• Interest rate on the outstanding loan set at 22% per annum
• Interest-free period from 15 August 2025 to and including 15 February 2026
• Quarterly repayment with first repayment scheduled to begin in March 2026
• Loan maturity extended to 31 July 2027
• The gold loan can increase to a maximum of 10,490.1268 troy ounces before going into default
• Issuance of new warrants to MM, increasing their entitlement to 3% of Akobo’s fully diluted market capitalisation

As part of its financial strengthening, Akobo has also carried out a US$3 million private placement of 15 million new shares subscribed by Ethiopian Investment Holdings (EIH) at a subscription price of US$0.20 per share, as announced on 11 August 2025.

Akobo has also notified all bondholders that the two remaining convertible bonds will be converted into shares, based on the terms of the private placement towards EIH. The process of conversion and issuance of corresponding shares will commence immediately.

With the funding from EIH, the convertible bonds, and the amended and restated MM loan, the company is well-positioned to advancing its operations. Construction of the vertical shaft is progressing according to plan and is expected to be completed around year-end. Once operational, it is expected to materially enhance production and revenues.

“We are pleased to have completed the restructuring and to continue our strong partnerships with Monetary Metals and Ethiopian Investment Holdings,” said Jørgen Evjen, CEO of Akobo Minerals. “Their support provides the financial flexibility needed to complete the vertical shaft and improving our operations in Ethiopia.”