Akobo Minerals AB (publ), (Euronext and Frankfurt: AKOBO, OTCQX: AKOBF), the Scandinavian-based Ethiopian gold exploration and mining company, today provided an operational update marking the successful completion of its processing plant construction and the commencement of commissioning activities.
OPERATIONAL HIGHLIGHTS
- Completion of Tailings Storage Facility (TSF), diesel infrastructure, electrical work, and piping
- Phased commissioning initiated at site in collaboration with Universal Power Africa and Solo Resources
- Successful synchronisation, testing and operation of all generators
- Mill commissioned and running, conveyer belts and crusher in process today
- Advancement towards low grade gold processing in July, with gold ore expected to be reached in Eastern Winze shortly
STRATEGIC ACHIEVEMENTS
- Engagement of seasoned industry player DRA Global to support in enhancing mining operations efficiency and reducing operational risks. With over 40 years of experience in the mining sector, DRA Global brings extensive expertise in optimizing mine and processing plant operations, ensuring a smooth transition to revenue generation. In particular, DRA subsidiary Minopex has developed an impressive track record operating more than 46 sites, across base metals, precious metals and bulk commodities
- Sourcing and logistics partnerships in place with 3rd Party Procurement Enterprises, Airland Logistics, and DRA Global
- License received from Ethiopian Petroleum and Energy Authority facilitating independent fuel sourcing and transportation, bolstered by a direct agreement with the National Oil Company
- Updated mine plan forecasts substantial revenue potential and EBITDA improvement within the initial operational phase
- Restructuring of debt obligations through conversion of convertible debt to equity, resulting in a streamlined financial structure with Monetary Metals
GOVERNMENTAL SUPPORT
Akobo Minerals acknowledges the invaluable support received from the Ministry of Mines and other governmental bodies throughout the construction and commissioning phases. Their collaboration has been instrumental in achieving this milestone.
KEY COMPANY HIGHLIGHTS
- A 'de-risked' project
- Segele gold ore body reached underground
- Processing plant in commissioning phase
- Significant cash flow to be generated
- Excitement around exploration activities following promising initial findings
- Ambition of developing world class deposits of 1.5 to 2 M oz
- Company has a first mover advantage, with expansion opportunities identified
Akobo Minerals will host a webcast, in English, for all shareholders and interested parties today at 10:00 CET. There will be a Q&A session following the management presentation.
The webcast will be available at: Akobo Minerals Webcast Q1 2024