Kefi restarts site preparation work at Tulu Kapi

(Sharecast News) - Kefi said on Tuesday that, following permission from security authorities, site preparations for project launch had restarted for the Tulu Kapi Gold Project, majority-owned via its subsidiary Tulu Kapi Gold Mines Share Company (TKGM).
The AIM-traded firm said the restart included district inspections by assessors for the financing syndicate, as well as consultations with the community.

It said that as a prelude to the next stage of community preparations, TKGM had struck a 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," the board said in its statement.

"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 21st 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."

The board said that for instance, the Tulu Kapi community would "potentially significantly benefit" from EECMY's microfinance institution in Ethiopia.

Kefi said it remained focussed on starting mining and plant commissioning in late 2023.

The Project launch schedule was expected to trigger certain community steps in December, with full launch within the following months.

In the meantime, as it announced on 4 November, the Ministry of Mines of Ethiopia recently confirmed that the mining licence was in "good standing" to 2035, subject to Kefi's confirmation of project finance procurement by 31 January, which remained 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."

Kefi said it would report further material developments, and make further progress reports, as appropriate.

At 1136 GMT, shares in Kefi Gold and Copper were up 9.5% at 0.99p.