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Pin to quick picksKefi Gold Regulatory News (KEFI)

Harry Anagnostaras-Adams, Exec Chairman at KEFI Gold and Copper, explains why timing is perfect

Harry Anagnostaras-Adams, Exec Chairman at KEFI Gold and Copper, explains why timing is perfect

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Project Update

3 Jan 2019 07:00

RNS Number : 0903M
KEFI Minerals plc
03 January 2019
 

3 January 2019

KEFI Minerals plc

("KEFI" or the "Company")

Project Update

 

KEFI Minerals (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 provide the following update regarding the Company's Tulu Kapi Gold Project (the "Project"), after recent meetings with its Ethiopian partners in the Project company Tulu Kapi Gold Mines Share Company ("TKGM"), the Government's regulatory agencies and the local community.

TKGM's current and planned Project partners (KEFI via KEFI Minerals (Ethiopia) Limited; the Ethiopian Federal Government via the Ministry of Finance and Economic Cooperation ("MOFEC"); and ANS Mining Share Company ("ANS")) have in the past week re-confirmed their respective support for the Project development and finance plan as previously reported by KEFI, and agreed that the focus should be to maintain progress whilst scheduling regular reviews to ensure it is in a manner designed to ensure safe and secure Project delivery.

In the Project update of 6 December 2018, we reported that we expected the receipt of the government regulatory consents and therefore to meet the conditions precedent for the release of the first tranche investment by ANS (Ethiopian birr equivalent of US$9million) by the end of December 2018. This also coincides with planned activities by MOFEC and other consortium members, which continue. Whilst the Government has provided a number of formal consents, at the date of this update there are a number of others that whilst having been verbally agreed, are still subject to processing formalities and thus the agreed deadlines have been extended to end January 2019. The Company believes that this deadline extension will have a minimal impact on the progression of the Project.

In the meantime progress at the Project site continues, with recent activities including:

·

The drilling for infrastructure design and land clearing. Some 180 locals are employed on these activities.

·

The first steps for the community resettlement program are due to start after the Ethiopian Christmas on 7 January 2019. This will include the financial training of the to-be-resettled- persons, to be conducted by a financial institution with a strong local presence and which is one of the syndicate of investors in the Project via ANS.

·

An independent reviewer will assess the resettlement plans to ensure they are conducted in accordance with Equator Principles and that the community feels ready for its safe and secure resettlement.

 

We believe the Project remains in excellent standing within the local community and all stakeholders. Coincident with the rapid and progressive political changes in Ethiopia since early 2018, KEFI has also introduced the finance plan for nearly 50% Ethiopian ownership. This has reinforced the Project's social licence which has proved invaluable during any civil disruptions within the general region. We are now applying an even better considered and duly cautious approach to the resettlement program whilst the outstanding and already-agreed regulatory steps are expected to be formally completed by the authorities shortly so as to satisfy all stakeholders.

Harry Anagnostaras-Adams, Managing Dierctor of KEFI Minerals plc, commented: "We start 2019 heartened by the current gold price outlook, the continuing positive transformation of the Ethiopian political situation and the level of support KEFI is receiving from major industry players Ausdrill and Lycopodium, as well as financiers including the Government and local institutional investors. We are confident that with this cautious and disciplined strategy, our well-qualified consortium provides an excellent platform to launch our Tulu Kapi Gold Project."

 

Enquiries

KEFI Minerals plc

Harry Anagnostaras-Adams (Managing Director)

+357 99457843

John Leach (Finance Director)

+357 99208130

SP Angel Corporate Finance LLP (Nominated Adviser and Joint Broker)

+44 20 3470 0470

Ewan Leggat, Jeff Keating, Soltan Tagiev

Brandon Hill Capital Ltd (Joint Broker)

+44 20 7936 5200

Oliver Stansfield, Jonathan Evans

IFC Advisory Ltd (Financial PR and IR)

+44 20 3934 6630

Tim Metcalfe, Heather Armstrong

 

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 7-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, Abdul Rahman Saad Al Rashid & Sons Company Limited ("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.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
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Date   Source Headline
16th Apr 20197:00 amRNSQ1 2019 Operational Update
10th Apr 201912:52 pmRNSTR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES
8th Apr 20197:00 amRNSProject Equity Financing Update
25th Mar 20194:40 pmRNSSecond Price Monitoring Extn
25th Mar 20194:35 pmRNSPrice Monitoring Extension
13th Mar 20197:00 amRNSProject Financing Update
6th Mar 20194:41 pmRNSSecond Price Monitoring Extn
6th Mar 20194:35 pmRNSPrice Monitoring Extension
5th Mar 20197:00 amRNSEthiopian Prime Ministerial Support
28th Feb 20197:00 amRNSTotal Voting Rights
21st Feb 201911:09 amRNSPlacing and Tulu Kapi Consortium Plans Update
4th Feb 20197:00 amRNSIndaba Presentation
29th Jan 20197:00 amRNSQ4 2018 Operational Update
25th Jan 20197:00 amRNSTKGM Project Partners Update
3rd Jan 20197:00 amRNSProject Update
2nd Jan 201912:05 pmRNSHolding(s) in Company
31st Dec 20187:00 amRNSTotal Voting Rights
17th Dec 201811:50 amRNSResult of GM & Issue of Equity
17th Dec 20187:45 amRNSGM Statement
6th Dec 20187:00 amRNSProject Update
29th Nov 20188:00 amRNSPosting of Notice of General Meeting
28th Nov 201810:20 amRNSLoan Facility, Operational Update and Notice of GM
6th Nov 20187:00 amRNSEthiopian Exploration Area Expansion
1st Nov 20187:00 amRNSKey Saudi Exploration Licence Issued
30th Oct 20187:00 amRNSSecured Loan Facility
29th Oct 20187:00 amRNSField Activities Advancements for Tulu Kapi
10th Oct 20187:00 amRNSQ3 Operational Update
8th Oct 20187:00 amRNSGovernment Clearance of Community Resettlement
2nd Oct 20187:00 amRNSTR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES
28th Sep 20181:45 pmRNSProject Equity Investment Agreement with ANS
27th Sep 20181:30 pmRNSInterim Results
26th Sep 201812:11 pmRNSTR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES
21st Sep 20187:00 amRNSAppointment of Joint Broker
18th Sep 20189:05 amRNSTR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES
10th Sep 20184:40 pmRNSSecond Price Monitoring Extn
10th Sep 20184:35 pmRNSPrice Monitoring Extension
6th Sep 20189:52 amRNSNew Director Appointment
4th Sep 20187:00 amRNSKey Government Consents Received For Tulu Kapi
24th Aug 20187:00 amRNSHeads of Agreement Signed with Ethiopian Syndicate
21st Aug 201812:07 pmRNSSecond Price Monitoring Extn
21st Aug 201812:02 pmRNSPrice Monitoring Extension
16th Aug 20184:40 pmRNSSecond Price Monitoring Extn
16th Aug 20184:35 pmRNSPrice Monitoring Extension
14th Aug 20187:00 amRNSTulu Kapi Update
9th Aug 20184:35 pmRNSPrice Monitoring Extension
1st Aug 20181:25 pmRNSDirector Dealing
24th Jul 20184:40 pmRNSSecond Price Monitoring Extn
24th Jul 20184:35 pmRNSPrice Monitoring Extension
20th Jul 20187:00 amRNSChange of Board Roles
12th Jul 20184:40 pmRNSSecond Price Monitoring Extn

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