TIDMKEFI
RNS Number : 7506Q
KEFI Minerals plc
21 February 2019
21 February 2019
KEFI Minerals plc
("KEFI" or the "Company")
Placing and Tulu Kapi Consortium Plans Update
KEFI Minerals (AIM: KEFI), the gold exploration and development
company with projects in the Federal Democratic Republic of
Ethiopia and the Kingdom of Saudi Arabia, is pleased to report
that:
-- Various foreshadowed financing arrangements are being
implemented for KEFI and for its Tulu Kapi Gold Project (the
"Project"), through Project company, Tulu Kapi Gold Mines Share
Company ("TKGM"), to reflect the intention to trigger the Project
development schedule at the end of the current quarter. This
intention was reinforced at meetings of the Project consortium
earlier this month in Addis Ababa and Cape Town, South Africa,
which were attended by the three Project partners (KEFI, the
Ethiopian Government and ANS Mining Share Company Limited ("ANS"))
and the three principal Project contractors (Ausdrill/African
Mining Services (mining services), Lycopodium (process plant) and
MKS/PAMP (gold transport and refining)).
-- Specific steps include:
o Pursuant to the shareholder approvals received at the
Company's General Meeting on 17 December 2018, to fund current
working capital of both KEFI and the Project, the Company has:
-- completed a GBP969,000 placing by issuing 57 million new
ordinary shares of 1.7p each in the capital of the Company (the
"Placing Shares") at a price of 1.7 pence per share (the
"Placing").
o As announced on 25 January 2019:
-- Ethiopian private-sector Project partner ANS has increased
its total commitment from US$30 million to US$38 million (Ethiopian
Birr equivalent); and
-- Ethiopian government-sector Project partner, the Federal
Government of Ethiopia, has commenced project-engineering
activities under its commitment to equity-fund US$20 million
(Ethiopian Birr equivalent) of offsite-infrastructure.
Amongst the advantages of these funding arrangements are that
they will allow the scheduled activities in the first six months of
the Project development schedule to target the reduction in the
period between debt-drawdown and first gold production and,
consequently, to increase the period between first gold production
and first debt-repayment.
Also as part of the preparations for KEFI's next stage of
development, the Company has appointed SVS Securities PLC as Joint
Broker, to focus on the retail investor markets.
KEFI Managing Director and TKGM Chairman, Mr Harry
Anagnostaras-Adams, said, "KEFI would like to express its
appreciation to our Ethiopian Project partners, the Government of
Ethiopia and ANS for their respective commitments of Project equity
alongside that of KEFI.
"Not only does this demonstrate their ongoing support for the
Project, but it also enables certain development works to be
expedited, thereby increasing the expected period between first
gold production and first debt-repayment."
Admission of New Ordinary Shares and Total Voting Rights
The Placing Shares will be allotted and credited as fully paid
and will rank pari passu in all respects with the existing ordinary
shares in issue, including the right to receive all dividends and
other distributions declared, made or paid on or after the date on
which they are issued.
Application will be made to the London Stock Exchange for 57
million new ordinary shares of nominal value 1.7p each in the
capital of the Company ("New Ordinary Shares") to be admitted to
trading on the AIM market of the London Stock Exchange
("Admission") with Admission expected to occur on or around 27
February 2019.
Following Admission of the New Ordinary Shares, the total issued
share capital of the Company will consist of 628,702,973 ordinary
shares each with voting rights. The Company does not hold any
ordinary shares in treasury. Therefore, the total number of voting
rights in the Company will be 628,702,973 and this figure may be
used by Shareholders as the denominator for the calculations by
which they will determine if they are required to notify their
interest in, or a change in their interest in, the share capital of
the Company under the FCA's Disclosure Guidance and Transparency
Rules.
Further Information on the Placing
The Company has conditionally raised GBP969,000 (before
expenses) through the issue of 57 million New Ordinary Shares at a
price of 1.7 pence per share (the "Placing Shares") through Brandon
Hill pursuant to a placing agreement between the Company and
Brandon Hill (the "Placing Agreement").
The Placing is conditional on, amongst other things, the
Admission of the Placing Shares occurring on or before 8.00 a.m. on
27 February 2019 (or such later time and/or date as Brandon Hill
and the Company may agree, being not later than 8.00 a.m. on 14
March 2019).
The Company has appointed Brandon Hill as its agent to use its
reasonable endeavours to procure subscribers for the Placing Shares
at the placing price pursuant to the Placing Agreement. The Company
has agreed to pay Brandon Hill certain commissions and fees in
connection with its appointment.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this announcement.
In addition, market soundings (as defined in MAR) were taken in
respect of the Placing with the result that certain persons became
aware of inside information (as defined in MAR), as permitted by
MAR. Due to the publication of this announcement, those persons
that received inside information in a market sounding are no longer
in possession of such inside information relating to the Company
and its securities.
Enquiries
KEFI Minerals plc
Harry Anagnostaras-Adams (Managing Director) +357 99457843
John Leach (Finance Director) +357 99208130
SP Angel Corporate Finance LLP (Nominated
Adviser and Joint Broker) +44 20 3470 0470
Jeff Keating, Soltan Tagiev
Brandon Hill Capital Ltd (Joint Broker) +44 20 7936 5200
Oliver Stansfield, Jonathan Evans
SVS Securities Plc
Tom Curran / Ben Tadd +44 (0) 203 700 0078
IFC Advisory Ltd (Financial PR and IR) +44 20 3934 6630
Tim Metcalfe, Heather Armstrong
Notes to Editor
KEFI Minerals plc
KEFI is focused primarily on the advanced Tulu Kapi Gold Project
development project in Ethiopia, along with its pipeline of other
projects within the highly prospective Arabian-Nubian Shield. KEFI
targets that production at Tulu Kapi generates cash flows for
capital repayments, further exploration and expansion as warranted
and, when appropriate, dividends to shareholders.
KEFI Minerals in Ethiopia
Ethiopia is currently undergoing a remarkable transformation
both politically and economically.
The Tulu Kapi gold project in western Ethiopia is being
progressed towards development, following a grant of a Mining
Licence in April 2015.
The Company has now refined contractual terms for project
construction and operation. Estimates include open pit gold
production of c. 140,000oz pa for a 7-year period. All-in
Sustaining Costs (including operating, sustaining capital and
closure but not including leasing and other financing charges)
remain c. US$800/oz. Tulu Kapi's Ore Reserve estimate totals 15.4Mt
at 2.1g/t gold, containing 1.1Moz.
All aspects of the Tulu Kapi (open pit) gold project have been
reported in compliance with the JORC Code (2012) and subjected to
reviews by appropriate independent experts.
A Preliminary Economic Assessment has been published that
indicates the economic attractiveness of mining the underground
deposit adjacent to the Tulu Kapi open pit, after the start-up of
the open pit and after positive cash flows have begun to repay
project debts. An area of over 1,000 square kilometres adjacent to
Tulu Kapi has been reserved for exploration by KEFI upon
commencement of development, with a view to adding satellite
deposits to development and production plans.
KEFI Minerals in the Kingdom of Saudi Arabia
In 2009, KEFI formed Gold and Minerals Ltd ("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-Nubian Shield. KEFI has a 40% interest in
G&M and is the operating partner.
ARTAR, on behalf of G&M, holds over 20 EL applications. 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 announced policies to encourage
minerals exploration and development, and KEFI 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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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