This never happened as well1 Jun 2023 19:30
23 Aug 2021 07:00
RNS Number : 3906J
Kefi Gold and Copper PLC
23 August 2021
23 August 2021
KEFI Gold and Copper plc
("KEFI" or the "Company")
Tulu Kapi Full Funding Package Assembled
Enlarged funding package structured to enable start of Tulu Kapi development at the end of the Ethiopian wet season
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 report that it has now assembled the full funding package of US$356 million estimated to be required for the development of the Company's Tulu Kapi Gold project ("Tulu Kapi" or the "Project") by KEFI subsidiary Tulu Kapi Gold Mines Share Company ("TKGM"). This package is designed to fund all infrastructure, the start-up of the open pit mine and the initial development of the underground mine.
Highlights
· Tulu Kapi full funding package of US$356 million assembled
· Enlarged funding package now covers full development of Tulu Kapi, including initial underground development
· Financial completion through the signing of binding documentation and the launch of full development expected at the end of the Ethiopian wet season in October 2021
· KEFI to retain c.70% interest in TKGM
· NPV* to KEFI of US$376 million (at current prices) or 12.6p per share for the Company's Tulu Kapi and Hawiah copper-gold projects
* Net Present Value ("NPV") is internally derived using independently created financial models of net cash flows after tax and debt service discounted at 8% per annum, based on Definitive Feasibility Study ("DFS") for Tulu Kapi open pit gold-silver mine, Preliminary Economic Assessment ("PEA") for Tulu Kapi gold-silver underground mine and PEA for Hawiah underground copper-gold-zinc-silver mine. Metal prices assumed for the were prevailing spot market prices at 14 August 2021.
Project Funding
The signing of detailed binding documentation and the launch of full Project development is expected to coincide with the end of the Ethiopian wet season in October 2021. All equity and debt funding would be committed and binding upon signing, and subject only to normal conditions for such a transaction. Debt disbursement would follow after subscription of equity-risk capital, as is normal in such projects, and the timing of receipt will be structured to meet Project requirements.
Upon financial completion and any remaining conditions precedent being satisfied, it is expected KEFI will have achieved the following:
· Fully-funded the development of TKGM's open-pit gold mine for start of production in mid-2023;
· Have reserves set aside for cost-overruns for production start-up or, if not needed, available to trigger initial stages of development of Tulu Kapi underground mine from late 2023;
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