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.
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.