Tuesday , February 7 2023

Ethiopia’s minerals attract Hong Kong investor

Africa focused mineral exploration company – East Africa Metals has signed a finance deal with Hong Kong-based Luck Winner.

Luck Winner Investment Limited will provide development financing to the tune of US$250 million to be used for development of projects in Ethiopia.

The deal also includes a private placement for gross proceeds of approximately C$13.55 million and an unsecured loan to East Africa in the amount of C$2 million.

As a result a joint venture company will be formed, with 70% owned by Luck Winner and 30% by East Africa.

East Africa will contribute a proportionate amount of gold valued with a cost price of US$70/ounce, of up to 1.5 million gold equivalent ounces for an aggregate value of US$110 million.

The parties intend to expeditiously negotiate, finalise and execute a comprehensive joint venture agreement in respect to the JV company and the development of the projects.

Upon completion of the private placement and conversion of the loan, Luck Winner will own approximately 28.8% of East Africa’s outstanding shares.

Upon completion of the restructure, Luck Winner has the right to require the establishment of a joint venture for development of the Magambazi project, which will be 70% owned by Luck Winner and 30% by East Africa.

Luck Winner is an international mining development and investment company seeking to expand its investments throughout Africa.

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