The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
and this;
Q4: My question is about the investment of $9m by locals for 6% of Tulu Kapi. The disaster with ANS Mining 2019/2020 is well known. 1. is there a requirement from the Ethiopian government that locals must invest? 2. what is the probability that the investment of 9m$ will be made in the 2nd quarter of 2022? 3. What is Kefi's contingency plan if the $9m from locals does not happen in Q2 2022? 4. capital increases have been successfully carried out to pay consultants. Why doesn't Kefi Gold and Copper finance the $9m through a capital increase - and continue to receive 6% in Tulu Kapi in return?
1. there is no requirement for locals to invest. 2. The investment will follow finance closing or signing of binding documents by everyone. 3. There is more than one local party interested for that role 4. KEFI would be happy to pay for the 8% and get the extra shareholding, but needs to ensure that locals with a role to play have had every opportunity to participate.
TK we have funding but all have signed term sheets - but all need to see final clearances from Govt etc...
We have $35m convertables - half now half in 3 years
We have warrants for some...and the rest is covered
Saudi will be dead easy
a great deal of shares were given to contractors etc in lieu of wages so they were bound to take the first opportunity to sell, even at a loss. We can't possibly know how many could afford to hold on to them to see what happens but it was bound to have a negative effect on the SP for a while. Once the shares have moved from the impatient to the (slightly more) patient we should see some huge rises (with the right sort of news!)
Thanks for the detailed quarterly update. It seems so much to do. Can it be achieved in 3 months to end-June?
A: The only thing that needs several months is to demonstrate a record of undisturbed field work, as part of the security assessment. Other than that, KEFI and its syndicate naturally require the remaining Government clearances formally confirmed before finalising respective board approvals and signing binding documentation to deploy 100’s of people and $100’s million.
Q. Now That the parties have declared humanitarian truce in Tigray effective 24th March; says move paves way for resolution of conflict ending, does this now mean all parties in the TK project will also look to move the finance deal sooner to closure or is the ambition/expectation still a June sign off as per Kefi`s previous communications?
A. Nothing has changed and the ceasefire is as expected. All parties are heavily invested in getting the project launched and no-one is incentivised to do anything other than proceed ASAP. As the vast majority of the capital is provided at the project level by a number of parties, KEFI’s responsibility is to lead the syndicate and ensure all conditions precedent are satisfied and, to that end, all technical and most legal conditions have been cleared some time ago. The status was highlighted in the RNS of 3 March 2022, which, for the most part, rely on Government actions. This was updated in the Quarterly released on 1 April.
Q. Because everything is finely balanced in the TK project and like all moving cogs it would only take only one thing to fail and scupper the TK project, has the KEFI team got a backup plan should one of its Syndicate members pull out of the Finance deal before completion/Sign Off as the main aim is to surely complete and catch up lost time "Full Steam Ahead" now that the country is at peace once more?
A. Given the time and effort given by all parties in the finance syndicate, we strongly believe this group will provide the necessary funds. Of course, the funding mix may be tweaked if circumstances change prior to closing.