Akobo Minerals announced that it has reached an agreement with the South African company Solo Resources (Pty) Ltd. for delivery of a processing plant for production of gold at the Segele Mine. Akobo Minerals has been engaged in targeted exploration for gold in Ethiopia for more than 10 years. After solid discoveries in Segele, the company has previously announced that it will produce the gold from this area on its own.

Now the company confirms that mining will start and that it has signed an agreement with Solo Resources, which is one of the most experienced suppliers of processing plants in Africa. The company has more than 30 years of experience and has completed a total of 31 projects, of which 11 small and medium-sized gold processing plants in Africa. Despite increased uncertainty in the global trade and supply chains, deliveries and commissioning will not be significantly delayed.

Start-up is expected by the end of the first quarter of 2023, with efforts being made to get gold production started as early as possible. The agreement concluded is a fixed-price contract that will provide good protection against continued uncertainty in the world economy. Entering into a fixed-price contract has in itself led to some cost increase in relation to the Scoping study.

In addition, there are also other moderate cost increases due to higher prices for steel, fuel and other raw materials. Nevertheless, the company does not expect that the total investments associated with the start-up of the mining activities will be significantly higher than estimated in the Scoping study. Other terms of the agreement are as follows: Solo Resources will design the processing plant as well as order and ship all necessary parts to Ethiopia; Akobo Minerals will be responsible for transport to Segele and the construction of local infrastructure; Solo Resources personnel will be present at site to supervise installation and commissioning alongside Akobo Minerals consultants and processing plant staff; Payments will be made in South African Rand; Payment will be done in instalments over the period of design and procurement in line with the progress achieved.