Kefi Gold and Copper PLC Tulu Kapi Update (8695Q)
01 November 2021 - 6:00PM
UK Regulatory
TIDMKEFI
RNS Number : 8695Q
Kefi Gold and Copper PLC
01 November 2021
1 November 2021
KEFI Gold and Copper plc
("KEFI" or the "Company")
Tulu Kapi Update
KEFI (AIM: KEFI), the gold and copper exploration and
development company with projects in the Federal Democratic
Republic of Ethiopia and the Kingdom of Saudi Arabia, is pleased to
provide an update in respect of the licence tenure of the Tulu Kapi
Gold project ("Tulu Kapi" or the "Project") in Ethiopia. KEFI is
pleased to report that, since the safe return to their families on
24 October 2021 of our four abducted employees, as announced on 25
October 2021, we have responded formally and have also provided
detailed briefings to the Ethiopian Ministry of Mines ("MoM") as
regards the temporary suspension (by Government security forces) of
site access for Project launch preparations.
In particular regarding the Project schedule, Project company
Tulu Kapi Gold Mines Share Company ("TKGM") formally advised the
MoM of the appropriate adjustments to the recently MoM-approved
Development and Production Work Programme in compliance with the
mining regulations. We greatly appreciate the subsequent
understanding and support of the MoM, as well as that of the other
Ethiopian Government agencies, along with that of the local
community and other stakeholders.
TKGM has already proceeded to arrange remobilisation to the
Project site and district of the various teams. The site-access
prohibition will have lasted for approximately two months and we
expect to complete investigations and the required assessments and
reports within the next month. Accordingly, the Project schedule
has lost approximately three months due to circumstances outside
TKGM's control. All Tulu Kapi Project syndicate members appreciate
and understand the safety-first approach successfully adopted by
the community, the Ethiopian Government security forces and TKGM's
hostage recovery teams.
The Company has continued to progress legal documentation and
other Project preparations. Accordingly, TKGM has preserved its
ability to start Project commissioning in 2023 and the target is to
start launching key Project development activities in December
2021. The Company will report any further material developments and
make further progress reports as appropriate.
Enquiries
KEFI Gold and Copper plc
Harry Anagnostaras-Adams (Executive Chairman) +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, Adam Cowl
Brandon Hill Capital Ltd (Joint Broker) +44 (0) 20 7936 5200
Oliver Stansfield, Jonathan Evans
IFC Advisory Ltd (Financial PR and IR) +44 (0) 20 3934 6630
Tim Metcalfe, Florence Chandler
Notes to Editor
KEFI Gold and Copper 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 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, together with assembling the full
funding consortium and set the conditional terms for the
development funding package of c.US$356 million.
Estimates include gold production of c.190,000oz pa. All-in
Sustaining Costs (including operating, sustaining capital and
closure but not including leasing and other financing charges)
remain US$800-900/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 in the Kingdom of Saudi Arabia
In 2009, KEFI formed Gold & Minerals Limited ("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 34%
interest in G&M and is the operating partner.
ARTAR, on behalf of G&M, holds over 16 Exploration Licence
(ELA) applications pending the introduction of the new Mining Law.
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
mineral 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.
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