Indulge me for a moment

OK bear with me for a minute

In yesterdays presentation there was this section

Source World Bank (MinDiver) funding for CommunityESG projects and to compliment equity funds fromAfrican Development Groups and potential JV partners.

It got me thinking about the comment regarding "equity funds from African Development Groups".

Has anyone had any success? The answer is yes. Thor Explorations from Canada (the company that Kogi was mentioned along side in an article a couple of years ago (see here for those interested - https://www.businessamlive.com/canadas-thor-explorations-australias-kogi-iron-hunt-for-422m-to-invest-in-nigerias-gold-iron-ore-mining/ )

Anyway, from October 2019

Thor Explorations gets $78m funding from Africa Finance Corporation

https://www.iol.co.za/business-report/companies/thor-explorations-gets-78m-funding-from-africa-finance-corporation-35201081

"This is a significant milestone for Thor and for the mining sector of Nigeria. The total finance capital requirement for the project is US$87.5 million and the AFC have put in the bulk of the required financing," Lawson said in a statement on Thursday.

"Not only have they put in debt, they have put down a $9 million pre-payment on 4.4 percent of the gold and US$15 million in equity, meaning that they are becoming both a lender and a long-term shareholder. We are very excited about having them on board."

A small company with a lean team, Thor Explorations had up to this point focused on advancing the company’s projects without doing much marketing.

Ok so I looked into African Development Groups a little more and iIt took me to this article from September 2019:
https://www.miningreview.com/event-news/africa-finance-corporation-proud-to-support-mining-industry-in-nigeria/

AFC “proud to support Nigeria’s mining industry”

At AFC, our mission is to foster economic growth and industrial development of African countries while delivering a competitive return on investment to our shareholders.

What are the trends you are seeing in the mining industry?
As I mentioned earlier in regard to Thor Explorations, the financing was part credit, stream and equity. I believe that streaming will become a more prominent alternative to financing because it gives companies the financial solutions they need without diluting their existing shareholders nor adding significant and onerous layers of debt to their balance sheets.
AFC, as an investor, particularly likes this form of financing due to the speed and efficiency of transacting. Another trend we’re seeing in the mining industry is the ecosystem approach to investing and developing projects. Nothing happens in a vacuum – a mine needs a seaport to transport the product to its consumers, a road to get to the port, electricity, internet, etc.

Diversifying away from oil, which is unpredictable in pricing, is key to ensuring the country’s stability as is maximising our mineral wealth instead of importing from abroad. However, it goes without saying, that this will not be done at any cost.
Delegates must understand that Nigeria’s mineral wealth must be exploited in a way that is inclusive and sustainable, and more thought must be given to in-country beneficiation so that Nigerians are not only producing natural resources but also manufacturing finished products.



So African Development Banks are taking equity stakes in companies that are mining in Nigeria - and only 6 months ago did so in a gold mining company.
There is no question that our project is much more important for the Nigerian economy than a gold mining operation.

Our company is following a similar path to Thor and I fully anticipate us to achieve a similar if not better outcome. Its very clear to me following the presentation and recent communication from the company that this is the current strategy.

I feel it will lead to very positive results for us as shareholders both in terms of equity capital as well as share price appreciation.

Good luck all