AMAK Announces Developments in Use of IPO Proceeds of New Shares

Almasane Alkobra Mining Company (AMAK) announced on Wednesday the developments of the use of proceeds from its initial public offering (IPO) related to the new shares which took place during the period from 9th to 11th March 2022 as follows:

1. The company received gross proceeds amounting to SR609.3 million. The net proceeds for the company amounted to SR594.8 million whereas around SR14.5 million being the IPO related company expenses. The IPO proceeds were received on March 31, 2022.
2. Use of net offering proceeds as described in the prospectus is as follows:
3. Moyeath orebody development project amounting to SR 296.2 million
4. Exploration Activities Expenditure amounting to SR121.7 million
5. General purpose amounting to SR176.7 million
6. Moyeath orebody development project: The actual disbursements were around SR30 million as of end of Q1 2022.
7. Regarding the General purpose the company, made an early settlement of an outstanding medium term Tawarroq loan amounting to SR29.2 million on March 31, 2022 from the general purpose IPO proceeds of SR176.7 million leaving the general purposes IPO proceeds balance at SR147.5.

The medium term Tawarroq loan agreement was obtained on 17th December 2019 to finance the capital expenditure related to the company’s new Guyan Gold Mine with the financing amount of SR50 million repayable in 12 equal quarterly instalments with the original maturity date of 31st December 2023. By settling this loan, the company will have paid off all its commercial loans, leaving it with only loans provided by the Saudi Industrial Development Fund.

1. The company will announce any significant developments in this regard as they occur