TIDMKEFI
RNS Number : 4122B
KEFI Minerals plc
06 June 2019
6 June 2019
KEFI Minerals plc
("KEFI" or the "Company")
Central Bank Approval for Project Finance Package
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 announce
that it has received the last remaining federal government consent
for the financing and development of the Company's Tulu Kapi Gold
Project (the "Project") from the National Bank of Ethiopia, the
Ethiopian central bank. The National Bank of Ethiopia has now
provided its formal approval of the terms of the proposed full
Project finance package.
As background:
-- the Ethiopian central bank held back this long-anticipated
formal confirmation until it had also simultaneously approved a
policy directive for general public application;
-- the approvals now received as regards the terms of the
proposed full Project finance package include the right to use
leasing as a form of finance, a debt/equity capital ratio of up to
70/30, recognition of historical expenditure in the calculation of
the capital ratio, the right to use gold price hedging and the
application of market-based long-term fixed interest rates;
-- this set of central bank and other approvals clears the way
for KEFI's Project-level partners to subscrible to TKGM shares for
their combined US$58 million (Ethiopian Birr equivalent) equity
investment and also for the mandated US$160 million infrastructure
financing. Whilst waiting for this central bank confirmation letter
and policy directive, the Company has already obtained the two
other third party approvals required by the various interlinked
arrangements:
o KEFI's secured working capital financier, Sanderson Capital
Partners Limited, has agreed to security sharing arrangements with
ANS Mining Share Company ("ANS Mining"), KEFI's private-sector
Project equity partner in Tulu Kapi Gold Mines Share Company
("TKGM"). Such short term security arrangements fall away on the
closing of full TKGM Project financing and, in the meantime,
facilitate KEFI's working capital arrangments and the Project
equity funding of the first part of the 24 month Project
development programme; and
o KEFI's Government-sector Project partner in TKGM, the
Ethiopian Ministry of Finance, has also agreed to the undertakings
requested by ANS Mining. Consequently, upon the execution of
subscription documents by all three partners in TKGM (KEFI, ANS
Mining and Ministry of Finance), reflecting the previously agreed
terms, this will allow execution and settlement of the first ANS
Mining equity instalment of US$11.4 million (Ethiopian Birr
equivalent) in June 2019, as outlined in the Company's announcement
on 8 April 2019.
-- Implementation of financing can now flow between the
consortium members and the Project can also proceed on the ground
with the community and local authorities.
-- The publicly guided development schedule provides for a
cautious build up of site activities, whilst site security,
detailed engineering and the first small community resettlement are
carefully dealt with.
Commenting KEFI and TKGM Chairman, Mr Harry Anagnostaras-Adams,
said, "KEFI would like to express its appreciation of the enormous
efforts by the Ministry of Finance, the Ethiopian central bank and
other authorities to establish regulatory frameworks to oversee and
support policies and actions being dealt with for the first time,
as the Tulu Kapi Gold Project is the first-mover in modern
Ethiopian mining.
"Likewise, we would like to thank the consortium members for
their patience and support as we work through the compliance
requirements of the various jurisdictions for this +US$200 million
funding package assembled at the Project level."
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.
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 (0) 20 3470 0470
Jeff Keating, Soltan Tagiev
Brandon Hill Capital Ltd (Joint Broker) +44 (0) 20 7936 5200
Oliver Stansfield, Jonathan Evans
SVS Securities Plc (Joint Broker) +44 (0) 203 700 0078
Tom Curran / Ben Tadd
IFC Advisory Ltd (Financial PR and IR) +44 (0) 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 G&M in Saudi Arabia with local Saudi
partner, 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 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 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
MSCBBGDLXDGBGCL
(END) Dow Jones Newswires
June 06, 2019 07:27 ET (11:27 GMT)
Kefi Gold And Copper (LSE:KEFI)
Historical Stock Chart
From Apr 2024 to May 2024
Kefi Gold And Copper (LSE:KEFI)
Historical Stock Chart
From May 2023 to May 2024