Last checked at 14 Nov 2019 13:00
14 November 2019
KEFI Minerals plc
("KEFI" or the "Company")
Development of Ethiopian Mining Skill Base
KEFI (AIM: KEFI), the gold exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, is pleased to announce that the Company's Tulu Kapi Gold Project (the "Project") subsidiary, Tulu Kapi Gold Mines Share Company ("TKGM") has signed a Memorandum of Understanding ("MOU") with the Ministry of Mines and Petroleum of The Federal Democratic Republic of Ethiopia, together with the Western Australia School of Mines, Curtin University ("WASM"), to develop and enhance the mining skill base in Ethiopia. The MOU was signed earlier today at an event hosted by the Ethiopian Minister for Mines and Petroleum, Dr Samuel Urkato and attended by other dignitaries, including the Australian Ambassador to Ethiopia, His Excellency Mr Peter Doyle.
The MOU is intended to provide a framework to assist with providing the necessary skill base to support and assist TKGM with the development and operation of the Project, the first first modern minerals mining industrial-scale operation in Ethiopia for some decades, together with developing world-class mining competencies in Ethiopia. WASM will be responsible for designing tailor-made training materials and assessment mechanisms to ensure the appropriate competencies are available. TKGM's commitments are already scheduled and budgeted within the Project plans for its own personnel and those of its principal contractors, Lycopodium and Perenti/Ausdrill, both of whom are based in Western Australia and have operated in Africa for over twenty years. The TKGM consortium is committed to maximising local employment and the local flow-on benefits of the Project.
Commenting KEFI's Executive Chairman, Mr Harry Anagnostaras-Adams, said, "We are delighted to have signed this MOU and to be working with the Ethiopian Government and WASM to both ensure that we have the right skill base available for our Tulu Kapi Gold Project and to be assisting Ethiopia more widely in developing their mining sector."
Enquiries
KEFI Minerals plc |
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Harry Anagnostaras-Adams (Managing Director) | +357 99457843 |
John Leach (Finance Director) | +357 99208130 |
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SP Angel Corporate Finance LLP (Nominated Adviser and Joint Broker) | +44 (0) 20 3470 0470 |
Jeff Keating, Soltan Tagiev |
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Brandon Hill Capital Ltd (Joint Broker) | +44 (0) 20 7936 5200 |
Oliver Stansfield, Jonathan Evans |
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IFC Advisory Ltd (Financial PR and IR) | +44 (0) 20 3934 6630 |
Tim Metcalfe, Florence Chandler |
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Notes to Editor
KEFI Minerals plc
KEFI is focused primarily on the advanced Tulu Kapi Gold Project development project in Ethiopia, along with its pipeline of other projects within the highly prospective Arabian-Nubian Shield. KEFI targets that production at Tulu Kapi generates cash flows for capital repayments, further exploration and expansion as warranted and, when appropriate, dividends to shareholders.
KEFI Minerals in Ethiopia
Ethiopia is currently undergoing a remarkable transformation both politically and economically.
The Tulu Kapi gold project in western Ethiopia is being progressed towards development, following a grant of a Mining Licence in April 2015.
The Company has now refined contractual terms for project construction and operation. Estimates include open pit gold production of c. 140,000oz pa for a seven-year period. All-in Sustaining Costs (including operating, sustaining capital and closure but not including leasing and other financing charges) remain c. US$800/oz. Tulu Kapi's Ore Reserve estimate totals 15.4Mt at 2.1g/t gold, containing 1.1Moz.
All aspects of the Tulu Kapi (open pit) gold project have been reported in compliance with the JORC Code (2012) and subjected to reviews by appropriate independent experts.
A Preliminary Economic Assessment has been published that indicates the economic attractiveness of mining the underground deposit adjacent to the Tulu Kapi open pit, after the start-up of the open pit and after positive cash flows have begun to repay project debts. An area of over 1,000 square kilometres adjacent to Tulu Kapi has been reserved for exploration by KEFI upon commencement of development, with a view to adding satellite deposits to development and production plans.
KEFI Minerals in the Kingdom of Saudi Arabia
In 2009, KEFI formed G&M in Saudi Arabia with local Saudi partner, ARTAR, to explore for gold and associated metals in the Arabian-Nubian Shield. KEFI has a 40% interest in G&M and is the operating partner.
ARTAR, on behalf of G&M, holds over 20 EL applications. ELs are renewable for up to three years and bestow the exclusive right to explore and to obtain a 30-year exploitation (mining) lease within the area.
The Kingdom of Saudi Arabia has announced policies to encourage minerals exploration and development, and KEFI Minerals supports this priority by serving as the technical partner within G&M. ARTAR also serves this government policy as the major partner in G&M, which is one of the early movers in the modern resurgence of the Kingdom's minerals sector.