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IFC Makes Its First Investment in Ethiopia’s Mining Sector through Nyota Minerals


In Johannesburg:
Houtan Bassiri
Phone: +27 (0)11 731 3179
E-mail:
hbassiri@ifc.org

In Washington, D.C.:
Josef Skoldeberg
Phone:  (202) 473 6978
E-mail:  jskoldeberg@ifc.org


Washington, D.C./ Addis Ababa, Ethiopia, May 27, 2010—IFC, a member of the World Bank Group, today agreed to invest 3.4 million British pounds 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.

About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit www.ifc.org.