Kefi Gold and Copper PLC Tulu Kapi Project Site Preparations Recommence (4373S)
16 November 2021 - 06:00PM
UK Regulatory
TIDMKEFI
RNS Number : 4373S
Kefi Gold and Copper PLC
16 November 2021
16 November 2021
KEFI Gold and Copper plc
("KEFI" or the "Company")
Tulu Kapi Gold Project Site Preparations Recommence
KEFI (AIM: KEFI) is pleased to report that following permission
from the security authorities site preparations for project launch
have recommenced for the Tulu Kapi Gold Project ("Tulu Kapi" or the
"Project"), majority-owned via KEFI subsidiary Tulu Kapi Gold Mines
Share Company ("TKGM"). This includes district inspections by
assessors for the financing syndicate and consultations with the
community.
As a prelude to the next stage of community preparations, it is
pleasing to report TKGM's new binding agreement with the Ethiopian
Evangelical Church of Mekane Yesus ("EECMY"). EECMY will be one of
KEFI's long-term partners in TKGM and also will support our
community projects. KEFI is greatly honoured to welcome EECMY and
we look forward to collaborating with EECMY in overseeing the
various community-based programmes in a manner which respects the
local rules and regulations, the 21(st) century international
standards for modern gold production such as World Bank IFC
Performance Standards and also the highest moral codes of conduct.
Whilst the EECMY investment into TKGM is not playing a major role
in the total project finance package, EECMY's role is significant
for TKGM's social licence. For instance, the Tulu Kapi community
will potentially significantly benefit from EECMY's micro-finance
institution in Ethiopia.
We remain focused on starting mining and plant commissioning in
late 2023. The Project launch schedule is expected to trigger
certain community steps in December 2021, with full launch within
the following months. In the meantime, as announced on 4 November
2021, the Ethiopian Ministry of Mines recently confirmed that the
mining licence is in good standing to 2035 subject to KEFI's
confirmation of project finance procurement by 31 January 2022,
which remains on track.
The Company is confident that the security situation at the
Project has now been addressed and, whilst it has no direct impact
on TKGM's operations, remains optimistic that the current broader
conflicts within the country will be resolved peacefully. To this
end, we note that an African Union-appointed mediator has been
accepted by both sides in the political and military national
conflict and that he has begun to engage during the past week,
notably with the support of the United Nations, European Union and
other major world powers.
The Company will report 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.
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCBLBDBGSBDGBU
(END) Dow Jones Newswires
November 16, 2021 02:00 ET (07:00 GMT)
Kefi Gold And Copper (LSE:KEFI)
Historical Stock Chart
From Feb 2024 to Mar 2024
Kefi Gold And Copper (LSE:KEFI)
Historical Stock Chart
From Mar 2023 to Mar 2024