Addis Fortune (Addis Ababa)

15 July 2012

Ethiopia: Nyota Receives Over Two Million for Ethiopia Project

Nyota Minerals said on Thursday, July 12, 2012, that it had received over two million dollars from the International Finance Corporation (IFC). The East Africa-focused gold exploration and development company said in a statement that it had now received consideration for 21.7 million new ordinary shares.

The company would use the IFC's investment, which it announced last month, to advance its Tulu Kapi Project, in Ethiopia.

Drilling results have shown that the mine has an indicated resource of 23.6tn of gold, at 3.01 grams a tonne and an inferred resource of 23.8tn at 2.79 grams a tonne.

In June, the company stated that it had embarked on a 14,650-metre infill drilling programme aimed at converting a further 7.37tn of inferred resources to indicated status by the end of the fourth quarter

It was two years ago that the IFC had announced an investment of 5.26 million dollars in Nyota Minerals to support its projects in Ethiopia.

"We expect [the] IFC's involvement to add significant value as our Tulu Kapi Project develops, both in terms of ongoing assistance in relation to social and environmental matters and in terms of the company's ability to have access to potential IFC debt capital as we move towards production," Melissa Sturgess, chief executive officer of Nyota, which explores for gold and nickel, said at the time.

The investment made by the IFC was its first venture into Ethiopia's mining industry.

"This investment continues our strategy of supporting early-stage exploration companies with financing and advice," William Bulmer, the IFC's global head for mining, commented at the time the agreement was signed.

The fund that the IFC released last week was part of a 10pc share in Nyota as well as receiving unlisted options in capital of the company, which, if exercised in full, would provide nearly a further six million dollars-worth of funding.

"The success of the Tulu Kapi Project will help promote good environmental and social standards and future foreign direct investment (FDI) in the country," the World Bank's private sector lending arm, stated.

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