Ethiopia's Gold Future: Akobo Minerals Secures Key Investments, Boosts Production
September 12, 2025, 3:31 pm
Akobo Minerals significantly bolstered its financial standing. A landmark $3 million investment arrived from Ethiopian Investment Holdings (EIH). This marked EIH's first international mining stake. The capital directly funds a crucial vertical shaft project. Concurrently, Akobo completed a comprehensive financial restructuring. Terms with Monetary Metals were amended. Loan maturity was extended. Interest terms became more favorable. August gold production exceeded targets. New processing equipment, shaking tables, improved recovery. Vertical shaft headgear production commenced. These strategic moves position Akobo Minerals for substantial gold output growth. The company aims for 50-80 kg monthly production. It solidifies its role in Ethiopia's burgeoning mining sector. Akobo strengthens its foundation for future success.
Ethiopian Investment Holdings, the nation's sovereign fund, made history. EIH completed its inaugural international mining investment. Akobo Minerals became the chosen partner. EIH injected $3 million into Akobo. This private placement provided 15 million new shares. EIH now holds a 7.4% ownership stake. The funds are earmarked. They will finance a vital new vertical shaft. This shaft is critical for future operations. Its completion promises a tenfold increase in monthly gold output. Production expects to soar from 5-10 kg to 50-80 kg.
This investment signifies a major shift. Ethiopia targets greater global financial integration. The nation actively seeks to diversify its portfolio. EIH's "3D strategy" guides these moves. It emphasizes Diversification, Driving innovation, and Delivering value. Investing in Akobo Minerals aligns perfectly. It underscores Ethiopia's commitment to a robust mining sector. It also promotes local stakeholder involvement. This strategic partnership builds a bridge for future cross-border investments. It strengthens Ethiopia's economic presence on the world stage.
Akobo Minerals concurrently completed a major financial overhaul. This restructuring enhanced the company's fiscal health. A key element involved Monetary Metals. The existing loan agreement saw full amendment. New terms are now formally in place. The outstanding loan now carries a 22% annual interest rate. Importantly, an interest-free period was secured. This spans from August 2025 through February 2026. Quarterly repayments begin in March 2026. The loan's maturity date extended significantly. It now reaches July 31, 2027. The gold loan ceiling also increased. It can reach 10,490.1268 troy ounces before default. New warrants were issued to Monetary Metals. This grants them a 3% entitlement in Akobo’s fully diluted market capitalization.
Further strengthening came from convertible bond conversions. Two remaining bonds transitioned into shares. These conversions followed the EIH private placement terms. The process of issuing corresponding shares began immediately. This multi-pronged financial strategy provides crucial flexibility. It ensures Akobo Minerals possesses the capital needed. These funds support ongoing development. They secure operational stability. The company is now financially robust. It is ready for expansion.
Akobo Minerals reported strong operational performance for August 2025. The Segele mine achieved significant doré gold production. Approximately 7 kg of gold was produced. This translates to roughly $700,000 in value. It successfully exceeded the minimum target of 5 kg. Total doré gold production to date reached approximately 45 kg. This demonstrates consistent output.
Operational advancements continue at a rapid pace. Two new large shaking tables were installed. These tables enhance gold recovery efficiency. They streamline processing operations. Their testing proved successful. A new Operations Manager joined the team. Johnny Swanepoel brings extensive mining experience. His expertise targets maximized gold recovery. He ensures high purity from the ore.
Progress on the vital vertical shaft accelerates. This shaft is a long-lead item. Headgear for the new vertical shaft is now in production. The first deposit for this critical component has been paid. Mobilization of the sink shaft team is imminent. Heavy rain presented challenges during August. Despite this, the site team maintained strong performance. Construction of the vertical shaft is on track. Completion is expected around year-end. This infrastructure will materially enhance future production. It promises increased revenue streams. The path to 50-80 kg monthly production becomes clearer.
Akobo Minerals operates as a Scandinavian-based gold producer. Its primary operations are in Ethiopia's Gambela region. The company holds significant exploration and mining licenses. For over 15 years, Akobo has built a strong foothold. Its Segele mine boasts world-class gold grades. Inferred and Indicated Mineral Resources stand at 68,000 ounces. The grade averages 22.7 g/ton. This high-grade resource remains open at depth. This supports future resource growth. It promises an extended mine life.
Akobo is committed to responsible mining. ESG principles form the core of its operations. The company maintains strong community and government relations. Transparency and ethical practices guide its work. This commitment ensures sustainable growth. It creates shared value. The recent financial and operational milestones are transformative. They position Akobo Minerals uniquely. The company is poised to become a major player. It will contribute significantly to Ethiopia's promising mining future. This period marks a new chapter for Akobo. It is a time of accelerated development and expansion. The goal is clear: becoming a leading gold producer in East Africa.
Ethiopian Investment Holdings, the nation's sovereign fund, made history. EIH completed its inaugural international mining investment. Akobo Minerals became the chosen partner. EIH injected $3 million into Akobo. This private placement provided 15 million new shares. EIH now holds a 7.4% ownership stake. The funds are earmarked. They will finance a vital new vertical shaft. This shaft is critical for future operations. Its completion promises a tenfold increase in monthly gold output. Production expects to soar from 5-10 kg to 50-80 kg.
This investment signifies a major shift. Ethiopia targets greater global financial integration. The nation actively seeks to diversify its portfolio. EIH's "3D strategy" guides these moves. It emphasizes Diversification, Driving innovation, and Delivering value. Investing in Akobo Minerals aligns perfectly. It underscores Ethiopia's commitment to a robust mining sector. It also promotes local stakeholder involvement. This strategic partnership builds a bridge for future cross-border investments. It strengthens Ethiopia's economic presence on the world stage.
Akobo Minerals concurrently completed a major financial overhaul. This restructuring enhanced the company's fiscal health. A key element involved Monetary Metals. The existing loan agreement saw full amendment. New terms are now formally in place. The outstanding loan now carries a 22% annual interest rate. Importantly, an interest-free period was secured. This spans from August 2025 through February 2026. Quarterly repayments begin in March 2026. The loan's maturity date extended significantly. It now reaches July 31, 2027. The gold loan ceiling also increased. It can reach 10,490.1268 troy ounces before default. New warrants were issued to Monetary Metals. This grants them a 3% entitlement in Akobo’s fully diluted market capitalization.
Further strengthening came from convertible bond conversions. Two remaining bonds transitioned into shares. These conversions followed the EIH private placement terms. The process of issuing corresponding shares began immediately. This multi-pronged financial strategy provides crucial flexibility. It ensures Akobo Minerals possesses the capital needed. These funds support ongoing development. They secure operational stability. The company is now financially robust. It is ready for expansion.
Akobo Minerals reported strong operational performance for August 2025. The Segele mine achieved significant doré gold production. Approximately 7 kg of gold was produced. This translates to roughly $700,000 in value. It successfully exceeded the minimum target of 5 kg. Total doré gold production to date reached approximately 45 kg. This demonstrates consistent output.
Operational advancements continue at a rapid pace. Two new large shaking tables were installed. These tables enhance gold recovery efficiency. They streamline processing operations. Their testing proved successful. A new Operations Manager joined the team. Johnny Swanepoel brings extensive mining experience. His expertise targets maximized gold recovery. He ensures high purity from the ore.
Progress on the vital vertical shaft accelerates. This shaft is a long-lead item. Headgear for the new vertical shaft is now in production. The first deposit for this critical component has been paid. Mobilization of the sink shaft team is imminent. Heavy rain presented challenges during August. Despite this, the site team maintained strong performance. Construction of the vertical shaft is on track. Completion is expected around year-end. This infrastructure will materially enhance future production. It promises increased revenue streams. The path to 50-80 kg monthly production becomes clearer.
Akobo Minerals operates as a Scandinavian-based gold producer. Its primary operations are in Ethiopia's Gambela region. The company holds significant exploration and mining licenses. For over 15 years, Akobo has built a strong foothold. Its Segele mine boasts world-class gold grades. Inferred and Indicated Mineral Resources stand at 68,000 ounces. The grade averages 22.7 g/ton. This high-grade resource remains open at depth. This supports future resource growth. It promises an extended mine life.
Akobo is committed to responsible mining. ESG principles form the core of its operations. The company maintains strong community and government relations. Transparency and ethical practices guide its work. This commitment ensures sustainable growth. It creates shared value. The recent financial and operational milestones are transformative. They position Akobo Minerals uniquely. The company is poised to become a major player. It will contribute significantly to Ethiopia's promising mining future. This period marks a new chapter for Akobo. It is a time of accelerated development and expansion. The goal is clear: becoming a leading gold producer in East Africa.