(Alliance News) - KEFI Minerals PLC said work at the Tulu Kapi gold project in Ethiopia is to press on after a meeting of the joint venture company.
KEFI is looking to develop Tulu Kapi as part of Tulu Kapi Gold Mines Share Co, or TKGM. At a general meeting held by TKGM, all resolutions were passed.
This means the partners will proceed with the closing of first subscription funds from ANS Mining Share Co, which is providing USD38 million of funding. The Ethiopian government is spending USD20 million on the project.
KEFI also said the consortium of project partners, lenders, insurers, and contractors have been meeting in recent weeks and have agreed a plan for the next six months, after which "major" on-site work will begin.
Off-site works have already started, KEFI noted, and the government is bolstering administrative and policing staff in the area.
Harry Anagnostaras-Adams, the executive chair at KEFI and of TKGM, said: "The formal TKGM shareholder meeting was an important step for this closely co-ordinated public-private-partnership for Ethiopia's first modern mine in decades and has now cleared the way for the closing of the ANS equity subscription.
"The Tulu Kapi gold project is planned to be the largest single export generator in the country and all project planning is designed within the multi-party consortium to make our project a model first-mover in all social, environmental, human resource and technical aspects."
KEFI shares were 0.2% higher on Monday shortly before midday in London at 1.64 pence each.
By George Collard; georgecollard@alliancenews.com
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Kefi Gold (KEFI)