TIDMKEFI
RNS Number : 6461U
Kefi Gold and Copper PLC
06 December 2021
6 December 2021
KEFI Gold and Copper plc
("KEFI" or the "Company")
Significant Positive Turning Point in Ethiopian Conflict
KEFI Gold and Copper (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
provide this positive update about the security situation in
Ethiopia.
As previously reported, following the taking of office in
October 2021, the democratically elected Ethiopian Government
launched major military offensives in late November 2021 to drive
rebel militias out of the neighbouring states they had recently
occupied. Over the past few days, both sides in the conflict have
reported that the rebel militias are withdrawing. The Government
has publicly appealed to the local communities to treat the
retreating rebels with dignity.
KEFI sees this as a very positive development, so soon after the
Ethiopian Government's re-appointment in October 2021, following
the highly significant June 2021 elections. This turning point in
the military conflict reinforces KEFI's optimism that peace will
soon be restored in Ethiopia and, to this end, we also note that
diplomatic efforts have recently been intensified, with mediation
now backed by the African Union, United Nations and major world
powers.
KEFI's project teams have remained on the ground throughout this
period of broader national conflict, preparing for the launch of
the Company's Tulu Kapi Gold Project (the "Project") in an
appropriate safety-minded manner. At the same time, Project
syndicate members have reaffirmed their intended Project
participation as soon as compliance is demonstrated with normal
conditions precedent, including the community and security aspects
of World Bank IFC Performance Standards - also a condition of the
mining licence.
Developments on the ground in recent days have largely driven
the area of major conflict back to its origin in Tigray and helps
to establish a promising scene for the hoped-for de-escalation,
ceasefire and peaceful resolution for all Ethiopians. In KEFI's
view, there is little doubt that Ethiopia will then rapidly regain
its long-standing position amongst the world's top 10 growth
countries and that the minerals sector will play an important role
with the Company's Tulu Kapi Gold Project as one of the first
movers.
Executive Chairman of KEFI, Harry Anagnostaras-Adams, commented:
"We are especially happy for our host country Ethiopia and its
overwhelmingly peace-loving citizens.
"We deeply thank our personnel, our community and other
stakeholders for working so tirelessly during the challenging times
of 2021 in Ethiopia which now show real promise of being put behind
us. It is also wonderful to hear that many of the Company's
Ethiopian friends and associates living in other countries are
planning to spend Christmas in Ethiopia celebrating with their
extended families the expected imminent resolution of the internal
conflicts.
"In addition to our operations in Ethiopia, our team on the
ground in Saudi Arabia has made significant progress in adding
value to the Company's assets this year, completing approximately
30,000 metres of drilling, along with a range of tasks within the
Preliminary Feasibility Study. An updated Mineral Resource Estimate
for our Hawiah Copper-Gold Project remains on track to be reported
later this month."
Enquiries
KEFI Gold and Copper plc
Harry Anagnostaras-Adams (Executive Chairman) +357 994 57843
John Leach (Finance Director) +357 992 08130
SP Angel Corporate Finance LLP (Nominated Adviser +44 (0) 20 3470
and Joint Broker) 0470
Jeff Keating, Adam Cowl
+44 (0) 20 7936
Brandon Hill Capital Ltd (Joint Broker) 5200
Oliver Stansfield, Jonathan Evans
+44 (0) 20 3934
IFC Advisory Ltd (Financial PR and IR) 6630
Tim Metcalfe, Florence Chandler
Further information can be viewed at www.kefi-minerals.com
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 has for some years been undergoing a remarkable
transformation both politically and economically. However 2021 has
been a turbulent year for the country due to internal conflict due
to military challenges to the Federal Government from rebel
minorities.
The Tulu Kapi gold project in western Ethiopia has however
continued progressing towards development, following a grant of a
Mining Licence in April 2015.
The Company has refined contractual terms for project
construction and operation, together with having assembled the full
funding consortium and set the conditional terms for the
development funding package of c.US$356 million, to be triggered as
soon as normal conditions are satisfied including security.
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, depending on the gold price impact on the
royalty payable. 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
c.31.5% 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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