Rns guess the year/ best but construction to start in 20197 Aug 2024 10:02
10 Oct 2018 07:00
RNS Number : 4774D
KEFI Minerals plc
10 October 2018
10 October 2018
KEFI Minerals plc
("KEFI" or the "Company")
Q3 Operational Update
KEFI Minerals (AIM: KEFI), the gold exploration and development company with projects in the Kingdom of Saudi Arabia and the Federal Democratic Republic of Ethiopia, is pleased to provide an operational update for the period from 1 July 2018 to 30 September 2018.
This quarterly operational update encompasses the activities of KEFI Minerals (Ethiopia) Ltd ("KME") and Tulu Kapi Gold Mines Share Company ("TKGM") in Ethiopia and Gold & Minerals Ltd ("G&M") in Saudi Arabia.
Tulu Kapi Gold Project (the "Project")
Project Development Funding
Project development funding has been arranged, subject to normal conditions precedent:
· Equity capital has been committed as follows:
o KME has already funded the pre-development costs of approximately US$60 million;
o The Government of Ethiopia has committed US$20 million (Ethiopian Birr equivalent) to be subscribed over 2019-2020 to fund construction of off-site infrastructure; and
o ANS Mining Share Company ("ANS") has committed US$30-38 million (Ethiopian Birr equivalent) to be released to TKGM as follows:
§ US$9 million (Ethiopian Birr equivalent) in December 2018, subject to specified Government consents and the receipt of indicative terms sheet from the providers of secured finance; and
§ US$21-29 million (Ethiopian Birr equivalent) at the closure of full development funding in early 2019.
· Secured bonds/lease capital and a separate working capital line have been proposed, subject to normal conditions precedent:
o US$160 million issue of listed senior secured infrastructure bonds of which US$110 million is to fund construction of on-site infrastructure and the balance set aside for financing costs during the construction period and reserves.
o Working capital line via a stockpile financing facility up to US$20 million.
Project Contractors
All principal contractors are planning Project implementation with the KEFI/TKGM team and otherwise remain on standby for finance closing and mobilisation:
· Lycopodium for process plant and associated infrastructure.
· Ausdrill (via subsidiary African Mining Services) for mining services.
· Ethiopian Roads Authority for access roads.
· Ethiopian Electric Power Corporation for power connection.
Ethiopian Government (Federal, Regional, Zonal, Local as the case may be)
The following consents or permits have been granted:
· Development, operational, environmental and social plans.
· Investment and Shareholders Agreement for jointly-owned project company TKGM.
· Capital ratios, hedging and bank account arrangements for TKGM.
· Community resettlement dates and planned actions.
The following consents or permits remain outstanding:
· Registration of equity subscriptions, most already having b
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