Investment in Ethiopia’s mining sector

IFC, a member of the World Bank Group, today agreed to invest £3.4 mn in
Nyota Minerals Ltd to support a gold exploration project that is expected
to provide jobs and government revenues to Ethiopia once the mine is
developed.

IFC’s investment will be used by Nyota, an AIM and ASX listed mining
company focused on gold exploration, for the advancement of the Tulu Kapi
Gold Project in Western Ethiopia and for general corporate working capital.
IFC also will work with the company to ensure that exploration and any
subsequent mine development is carried out in an environmentally and
socially sustainable manner.

“Nyota is very pleased to welcome IFC as a shareholder and partner on the
Tulu Kapi Gold Project in Ethiopia,” said Melissa Sturgess, Nyota’s CEO and
Chairman. “We look forward to drawing from IFC’s expertise to help ensure
that the progress at Tulu Kapi follows globally recognized best practices
for the mineral exploration industry, the environment, and for working with
local communities.”

Ethiopia is seeking to diversify its economy and increase private sector
participation in its mining sector. Nyota is one of the few foreign
companies with an exploration project in Ethiopia, and the success of the
Tulu Kapi Project will help promote good environmental and social standards
and future foreign direct investment in the country.

“We are excited to be making IFC’s first mining investment in Ethiopia
through Nyota, a company we believe has the leadership and resources to
make the Tulu Kapi Project a success,” said William Bulmer, IFC Global Head
for Mining.  “This investment continues our strategy of supporting
early-stage exploration companies with financing and advice.”

IFC offers mining clients in developing countries a broad range of
financial and advisory services throughout the mining life cycle.  Through
its early equity investment program, IFC assists exploration-stage
companies such as Nyota with financing and advice on best practice
environmental and social management.

 

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