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Https://www.kefi-goldandcopper.com/files/announcements/kefi-jibal-qutman-gold-update-30jan24-final.pdf
From Ham on Advfn kefi Thread
As you mentioned Asfingia (new find), I went to check Google Earth for a Jibal Qutman flyover.
Firstly: also for Saudi there was a very recent sat imagery update/upgrade (previous dated 2018).
Based on the latest press release, I believe that Asfingia is visible at the following coordinates:
20°22'59.04"N
43°24'28.00"E
But more interesting is the following spot: it looks like a modern Camp. This must be the “new” exploration headquarter:
20°20'20.03"N
43°24'59.10"E
A bit more puzzling for me is the ground surface in two areas east of the camp: the first one located 1km WSW, coordinates
20°20'6.71"N
43°25'34.34"E
The second one, much larger, located 1.7 km ENE, and developing to the North
20°20'13.83"N
43°25'55.47"E
They seem to be large surface testworks, made using a large blade-mounted machine (check the flat surface).
Maybe soil/sediment shallow sampling for gravimetric or heap leach trial testing? (metallurgical testworks)
And finally, maybe the most intriguing: it seems that they found a new, very big prospect. Check alignment between points
Start
20°26'51.38"N
43°25'56.02"E
End
20°27'11.88"N
43°26'32.02"E
Even if this seems off strike (from JQ), you will see an impressive set of "scratches", very similar to the previous ones, in a corridor 1.5 km long. Maybe Rob can help on that, but I don’t remember such thing was ever reported.
All those features were not visible in the historical imagery, which was less detailed.
Ham
Part two(interviewer) so what preparations are being done for full project launch?
(Harry) The key thing is to be on the ground with our teams engaging with the community..and that started a few weeks ago..during the same period there is the second step which is crossing I’s and dotting t’s..these things are administrative and given that everyone is willing to proceed there should not be any issues. The third thing is the domino effect of lead bank approval December second bank picks up its pen January (looks like second bank was simply slightly behind first bank) and main Equity holders pick up their pens February (suggests to me that second bank approval is a fait accompli that might just be rolled into approvals from all parties if it does not drop before that) so keeping that progress going so they all come together for a closing.
(Harry) The trigger was the new laws that the government brought in that will benefit every miner from now on. I know its frustrating for shareholders asking if that was announced in October why are we not in business already but giant banks giant multi nationals just takes time..but it is all happening.
Rough transcript my comments in brackets as normal.part one
(Interviewer) looks like good progress has been made after meeting the consortium at Indaba (mining conference) last week?
(Harry) ..all the stakeholders are everybody just want to get on with it now..
(Interviewer) So members of the funding syndicate are reporting back on the finance plan that has been put forward, take us through the finance plan and how its structured.
..in Ethiopia has nor been done before so laws of the land..had to be changed the highest priority was exchange controls and offshore accounts (effectively country changed its law to help the mining sector and kefi) been a journey but carried the syndicate with us who are familiar with the country and committed..development banks are willing to come to the country as are our local investors and contractors. The contractors are funding the mining fleet, the development banks are putting up a 190 million the (local?) government people putting up 40 million then local investors putting up lions share of the balance (subsidiaries of multi national corporations) they have been given special government permission to put there capital into us. So its mining project finance but it took a lot of work to get it to fit.
(Interviewer) you made the point that this is the first internationally financed mining project in Ethiopia so this is quite a milestone?
(Harry) Its huge its hard to convey the importance of this to the government and the country it been a rocky road but everyone is on board now. Ethiopia really does need hard currency the country was in the top ten growth countries for twenty years running but due to past conflict was damaged and now needs to get back on the development pathway with the help of the private sector and TK will be the largest exporter generator of the country.
Second tranche of warrants get triggered and that's what eight million? Think kefi will try to get that rather than do a raising though they might go for a cash injection by other methods like an extended credit line on the back of progress with their projects. After all with their recent discoveries in Saudi and JQ likely to be a lot bigger the company might now have other options https://www.kefi-goldandcopper.com/files/announcements/kefi-jibal-qutman-gold-update-30jan24-final.pdf
That’s your trouble Plump you always want a bargain they did try something like that once but it did not raise enough money. What was more important was financing TK at the project level.
Longer term better to get a Saudi listing like AmaK and put an extra zero on the end of the market cap (slide 27)
https://www.kefi-goldandcopper.com/files/presentations/kefi-investor-presentation-q1-2024-4feb24a.pdf Maybe you should push for that?
Https://www.kefi-goldandcopper.com/files/presentations/kefi-investor-presentation-q1-2024-4feb24a.pdf John slide 12.
Sorry tried to sign up once to TW but could not get it to work probably a good things as means i got in the habit of Dyor. Considering the high inflation rate that sounds not a lot but ditto here. However probably most of the deal will be done in dollars through the two African banks https://www.kefi-goldandcopper.com/files/announcements/kefi-tulu-kapi-update-5oct23.pdf
Smellyben getting a good deal because of several reasons, one the international companies have their money locked up in the country and this is a way to repatriate some of their profits, two its African banks which the Ethiopian government is a member of, three a chunk of the money will need to paid back well down the track when kefi should have two mines operational, four Ethiopian government needs to attract international miners which one of the reasons kefi mentioned the other miners in the RNS after all would have Allied have got involved if kefi had not done most of the heavy lifting regulations wise.
I think kefi does have a good idea of what share it will get as “Discussions have already commenced with well known industry-specialist financiers. We have deliberately withheld commitments on this until now, when the rest of the funding package is clear.” If they know the funding package and now feel free to discuss it with speciality financiers they probably have a very good idea which they will likely announce post board approvals of all parties.
DSRT Government would not spend anything unless it was sure things were going ahead also mentioned were bridges. There is already an Airstrip there though longer term might need it upgraded doubt we are talking Heathrow. Things will get done in stages anyway throughout construction and if the Ethiopian government could not cover its end local subsidiaries of multinational corporations could or the africian banks could. Not that see that a happening as once you have full go ahead the Ethiopian government will be able to borrow the money if it needs to.
Can see from satellite photos that they have built a church, school and are dismantling the old camp site and doubt they would lie about actually receiving some of the electrical equipment. They teams on the ground the cannot fib about either as would be picked up on by the consortium partners.
DSRT maybe read it for the third time.
"The Ethiopian Federal Government also attended and reaffirmed its equity capital investment has been fully documented, committed and already partly invested." "Partly invested probably..electricity contractor procuring all (and taken delivery of most) of the equipment required for connection to the mains grid; and road contractor completing upgrades to some bridges on existing routes, as well as the surveys of the new additional all-weather access road.
Suggest you reread the RNS DSRT clear that all the parties committed to the board approval stage after the recent meeting of kefi the banks and the Ethiopian government they would hardily do that unless all the parties expected the second bank to say yes from the impression that that bank gave.
The Company can now report that all the other parties in the funding syndicate, have advised they will this month go to their respective committees to approve the proposed transaction. (this month)
Also The contractors in the syndicate have all reaffirmed their intention and readiness to enter into the already drafted definitive documentation (already drafted..)
Community and Physical Preparations…
Having received the recent clarifications, the subsidiary-level equity-ranking product-linked funding piece of US$20 million can now also be finalised. Discussions have already commenced with well known industry-specialist financiers. We have deliberately withheld commitments on this until now, when the rest of the funding package is clear. (notice the last line)
Https://www.kefi-goldandcopper.com/files/announcements/kefi-tulu-kapi-project-update-13feb24.pdf there you go.
HtTps://www.proactiveinvestors.co.uk/companies/news/1040815/kefi-gold-says-funding-syndicate-to-submit-proposals-for-approval-this-month-1040815.html
"The Ethiopian Federal Government has also reaffirmed its equity capital investment has been fully documented, committed and already partly invested, according to the statement."
That's they way I read it as well no money from parent company for the project needed at this time..just "repayable in cash or equity at KEFI's election as from year 4 at then market prices" obviously kefi will pay it out of cash from production unless kefi share price is a very large multiple of what it is now four years down the track by then should have at least two mines on the go.
From Estseon kefi Advfn thread
There remains the $20m special finance but it sounds like some kind of royalty deal. It won't rank as equity.
The Federal and Local Governments will be the JV partners providing the increased amount of $40m at TKGM level taking c30%.
The equity risk notes ($70m) are repayable in cash or, at Kefi's option, in Kefi shares issued at market value at the time of redemption of the notes from year 4 (presumably at least 3 years after commencement of production but that needs to be clarified). The interesting twist on this part of the finance is that the finance will be provided in local currency but repaid in 'hard currency'. That might have required a bit of negotiation with the Central Bank.
The original senior debt offer from the banks was $110m (see RNS 19/06/2020 for instance). They are now providing $190m.
Before taking account of the massive amount of our cash invested in this project, only $210m of the $320m funding will be in 'hard currency'. Federal government will be providing infrastructure including the power link to the hydroelectric dam and Local government, I suspect, will be principally funding the relocation of families.