Akobo Minerals and Monetary Metals agree on revised gold loan terms
Akobo Minerals AB (publ), a Scandinavian-based Ethiopian gold producer, announces that it has agreed with Monetary Metals on revised terms for the Company’s existing gold loan facility.
Monetary Metals initially provided funding in November 2022 to support development of the Segele project and has remained a committed partner throughout. A first amendment was completed in February 2024. Following continued operational progress and updated development plans, the parties have now signed a Memorandum of Understanding (MoU) outlining revised terms intended to provide Akobo with greater financial flexibility. This MoU is subject to closing conditions as listed below.
Key elements of the MoU
- Interest rate on the outstanding loan reduced to the original 22% per annum
- Payment-in-kind (PIK) provisions for a 90-day period with no cash interest payments
- Interest-free grace period of 180 days, with no interest accrued or paid
- First repayment scheduled to begin in early 2026
- Loan maturity extended to 30th June 2027
- Standstill agreement in place until 31 August 2025, during which no default or enforcement actions will be taken
Main closing conditions to be fulfilled by 31 August 2025
- Finalisation and approval of an updated mine plan and economic model
- Minimum new funding of US$3.5 million, through equity, debt or other instruments, including convertible structures at Akobo’s discretion
- Approval of the revised loan terms by Monetary Metals’ bondholders (already obtained)
- Signing of a definitive Second Restructuring Agreement
Additional terms include the issuance of new warrants to Monetary Metals, increasing their entitlement from 2% to 3% of Akobo’s fully diluted market capitalisation. Monetary Metals will also maintain a board observer seat until the loan is fully repaid.
This agreement is part of Akobo’s broader strategy to secure a long-term financial foundation. It reflects the constructive partnership between the Company and its lenders, and a joint commitment to achieving a sustainable path forward that benefits all stakeholders.
Operationally, the processing plant is active, gold production has commenced, and geological data continues to support the presence of high-grade mineralisation. Sutton Global has been engaged to oversee the next phase of development, with a focus on enhancing underground access and production efficiency through the vertical shaft project.
“We appreciate the continued support from Monetary Metals and their confidence in our long-term plans. With the right partners, a strong operational team, and the project fundamentals in place, we are focused on putting the final pieces together to unlock the full value of Segele.” Jørgen Evjen, CEO, Akobo Minerals
