TIDMKEFI
RNS Number : 7382M
Kefi Minerals plc
11 May 2015
11 May 2015
KEFI Minerals plc
("KEFI" or the "Company")
FINANCING UPDATE
KEFI Minerals (KEFI), the gold exploration and development
company with projects in the Kingdom of Saudi Arabia and the
Democratic Republic of Ethiopia, is pleased to provide the
following financing update.
Update on Placing with Perth Global Funds' Goldfields Resources
Fund ("Goldfields")
As announced on 17 March 2015, the long stop date for the
placing with Goldfields was extended to 8 May 2015 to allow
Goldfields the time it considered it required for settlement of its
GBP3 million subscription on the terms previously agreed and
announced. The directors of Goldfields have re-affirmed their
desire to make KEFI their maiden investment, but will now only be
in a position to do so should Goldfields successfully close its
subscription, which it expects to have completed by 2 June
2015.
The Board of KEFI has decided not to extend the arrangement with
Goldfields and has proceeded with alternative funding plans as set
out below.
Placing of New Ordinary Shares
The Company, through utilisation of its existing authorities to
issue shares for cash, announces that it has conditionally raised
GBP666,106 (before expenses) through the placing (the "Placing") of
66,610,600 ordinary shares in the Company (the "Placing Shares") at
a price of 1p per share (the "Placing Price"). These shares rank
pari passu with the existing Ordinary shares in issue. The Placing
consists of a subscription, directly with the Company, by a leading
service provider to the African mining industry and of a placing of
Ordinary Shares with existing shareholders by Brandon Hill Capital
Ltd ("Brandon Hill") as agent for the Company.
Following this issue and due to the lapsing of the agreement
with Goldfields, the Company will have fully utilised its delegated
authority from shareholders to issue further ordinary shares.
Hence, in order to reinstate the Company's flexibility regarding
the funding of its working capital and other ongoing requirements,
the Directors of KEFI will seek authority from shareholders to
issue shares for cash on a non-pre-emptive basis. This matter will
be dealt with at the Annual General Meeting ("AGM") next month.
The Directors have advised the Company that it is their
intention to subscribe for approximately GBP250,000 of new Ordinary
Shares at not less than the Placing Price as soon as practicable
following the Company ceasing to be in a close period, and the
Company having the requisite authorities to issue further ordinary
shares. In addition, the Company has received indications from both
existing and new shareholders to participate in the planned
financings of the Company.
The wider development funding plan for the Company's Tulu Kapi
gold project remains on track for approximately $120 million of
development expenditure to be required over an 18-month period
commencing in Q4 2015, to be sourced from up to $100 million of
first-secured project finance and approximately $20 million to be
sourced from a combination of financing from contractors and equity
at the project or parent company level.
Details of the Placing
The Company has conditionally raised GBP666,106 (before
expenses) pursuant to the Placing. The net proceeds of the Placing
will be used to fund the Company pending its receipt of the
requisite authorities at the AGM as described above in order to
facilitate the balance of the planned funding. The Placing is
conditional, amongst other things, on the admission of the Placing
Shares to trading on the AIM market of the London Stock Exchange
("Admission") by 14 May 2015 (or such later date as the Company may
agree with Brandon Hill, being not later than 28 May 2015).
Application has been made to the London Stock Exchange and it is
expected that Admission will become effective and that dealings
will commence in the Placing Shares on 14 May 2015.
The Company has also granted to Brandon Hill warrants to
subscribe for 1,680,530 Ordinary Shares (being equal to 2.5 per
cent. of the number of Placing Shares) exercisable for three years
at the Placing Price.
Following Admission, KEFI will have 1,381,947,480 Ordinary
Shares in issue and this is the figure which should be used as the
denominator for the calculations by which shareholders will
determine if they are required to notify their interest in, or a
change to their interest in, the Company under the Disclosure and
Transparency Rules.
ENQUIRIES
KEFI Minerals plc
Harry Anagnostaras-Adams (Executive
Chairman) +357 99457843
SP Angel Corporate Finance
LLP (Nominated Adviser)
Ewan Leggat, Katy Birkin +44 20 3470 0470
Brandon Hill Capital Ltd (Broker)
Oliver Stansfield, Alex Walker,
Jonathan Evans +44 207 936 5200
Luther Pendragon Ltd (Financial
PR)
Harry Chathli, Claire Norbury,
Oliver Hibberd +44 207 618 9100
Further information can be viewed on KEFI's website at
www.kefi-minerals.com
NOTES TO EDITOR
KEFI Minerals plc
KEFI is the operator of two advanced gold development projects
within the highly prospective Arabian-Nubian Shield, with an
attributable 1.93Moz (100% of Tulu Kapi's 1.72Moz and 40% of Jibal
Qutman's 0.73Moz) Au Mineral Resources (JORC 2012) plus significant
resource growth potential. KEFI targets that production at these
projects generate cash flows for further exploration and expansion
as warranted, recoupment of development costs and, when
appropriate, dividends to shareholders.
Expected milestones for the remainder of 2015 at Tulu Kapi
include:
-- Independently updated Definitive Feasibility Study for banking purposes
-- Formalisation of senior secured finance syndicate, agreement
of final terms for project finance
-- Full development funding and commencement of construction
In addition, during 2015 KEFI anticipates triggering a
Preliminary Feasibility Study and commencement of the processes for
a Mining Licence Application for Jibal Qutman in Saudi Arabia
through its joint venture company, Gold & Minerals Ltd
("G&M").
KEFI Minerals in Ethiopia
The Tulu Kapi gold project in Western Ethiopia is being rapidly
progressed towards development. In October 2014, KEFI Minerals
reactivated the Mining Licence Application and assembled indicative
project finance terms. The Mining Licence was granted in April
2015.
An updated Definitive Feasibility Study is currently being
completed for construction of a 1.2Mtpa processing plant with
average estimated annual gold production of 80-90,000oz and an
All-in Cost (capital, operating and closure) of US$768/ounce
excluding the initial investment, much lower than industry average.
The planning parameters for the DFS have already been independently
confirmed and details are now being finalised and documented. The
Company's milestones include arranging full project funding in Q3
2015 and starting major works in Q4 2015, commissioning at the end
of 2016 and production in 2017.
KEFI Minerals in the Kingdom of Saudi Arabia
In 2009, KEFI formed G&M in Saudi Arabia with local Saudi
partner Abdul Rahman Saad Al-Rashid & Sons Company Limited
("ARTAR"), to explore for gold and associated metals in the Arabian
Shield. KEFI has a 40% interest in G&M and is the operating
partner. To date, G&M has conducted preliminary regional
reconnaissance and has had five exploration licences ("EL")
granted, including Jibal Qutman and the recently granted Hawiah
exploration licence that contains over 5km(2) of outcropping
gossans developed on VMS altered and mineralised rocks.
At Jibal Qutman, G&M's flagship project, the total
JORC-compliant reported Mineral Resources are now estimated at
28.4Mt at 0.80g/t Au for 733,045 contained gold ounces compared
with 22.0Mt at 0.90g/t Au for 633,461 contained gold ounces
previously estimated in March 2014, both at a cut-off grade of
0.2g/t Au.
ARTAR, on behalf of G&M, holds 24 exploration licence
applications that cover an area of approximately 1,484km(2) . ELs
are renewable for up to three years and bestow the exclusive right
to explore and to obtain a 30-year exploitation (mining) lease
within the area.
The Kingdom of Saudi Arabia has instituted policies to encourage
minerals exploration and development and KEFI Minerals supports
this priority by serving as the technical partner within G&M.
ARTAR also serves this government policy as the major partner in
G&M, which is one of the early movers in the modern resurgence
of the Kingdom's minerals sector.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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