Last checked at 27 Apr 2017 07:00
27 April 2017
KEFI Minerals plc
("KEFI" or the "Company")
UPDATE ON TULU KAPI PROJECT
KEFI receives first tranche of VAT refund worth £2.5 million (US$3.2 million)
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 announce that it has received ETB 30 million (approx. $1.3million at exchange rate of US Dollar Ethiopian Bir of 23 or Pound Sterling equivalent of £1 million) of the ETB73 million VAT refund. The Company has come to an agreement with Ethiopian Revenues and Customs Authority to receive the remainder of the funds over the next two months.
The Company's VAT refund from the Ethiopian tax authorities was agreed following KEFI's repayment of the inherited ""Reverse VAT Liability" within the agreed 3-year schedule to December 2016. The funds received will be used in Ethiopia to progress the development of Tulu Kapi project.
KEFI's Executive Chairman, Mr Harry Anagnostaras-Adams, said:
"The Ethiopian Government have remained supportive of our project in Ethiopia and are committed to facilitating growth of the mining sector. It is a mark of our relationship with the Government that payment of our VAT refund is occurring in a timely fashion. The monies received will be used to fund operations on the ground and progress the Tulu Kapi project."
ENQUIRIES
KEFI Minerals plc |
|
Harry Anagnostaras-Adams (Executive Chairman) | +357 99457843 |
John Leach (Finance Director)
| +357 99208130 |
SP Angel Corporate Finance LLP (Nominated Adviser) |
|
Ewan Leggat, Jeff Keating | +44 20 3470 0470 |
|
|
Brandon Hill Capital Ltd (Joint Broker) |
|
Oliver Stansfield, Alex Walker, Jonathan Evans | +44 20 7936 5200 |
|
|
RFC Ambrian Ltd (Joint Broker) Jonathan Williams
Beaufort Securities Ltd (Joint Broker) | +44 20 3440 6817 |
Elliot Hance | +44 20 7382 8300 |
|
|
Luther Pendragon Ltd (Financial PR) |
|
Harry Chathli, Claire Norbury, Ana Ribeiro | +44 20 7618 9100 |
Further information can be viewed on www.kefi-minerals.com
NOTES TO EDITOR
KEFI Minerals plc
KEFI is the operator of two advanced gold development projects within the highly prospective Arabian-Nubian Shield, with an attributable 1.93Moz (100% of Tulu Kapi's 1.72Moz and 40% of Jibal Qutman's 0.73Moz) gold Mineral Resources (JORC 2012) plus significant resource growth potential. KEFI targets that production at these projects generates cash flows for further exploration and expansion as warranted, recoupment of development costs and, when appropriate, dividends to shareholders.
KEFI Minerals in Ethiopia
The Tulu Kapi gold project in western Ethiopia is being progressed towards development, following a grant of a Mining Licence in April 2015.
Following completion of KEFI's Definitive Feasibility Study for Tulu Kapi, the Company is now refining contractual terms for project construction and operation. Latest estimates for annual gold production are c. 100,000oz pa for a 10-year period and All-in Sustaining Costs (including operating, sustaining capital and closure but not including leasing and other financing charges) of
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. These plans now also reflect the agreed construction and operating terms with project contractors, and have been independently reviewed by experts appointed for the project finance syndicate.
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.
The projected cash flows indicate that the net cash build-up (after servicing financing) in the first three production years is US$31 million to US$216 million within the 5 year gold price range of US$1,050/oz to US$1,750/oz.
KEFI Minerals in the Kingdom of Saudi Arabia
In 2009, KEFI formed G&M in Saudi Arabia with local Saudi partner, Abdul Rahman Saad AlRashid & 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. To date, G&M has conducted preliminary regional reconnaissance and has had five exploration licences ("ELs") granted, including Jibal Qutman and the more recently granted Hawiah EL that contains over 6km strike length of outcropping gossans developed on altered and mineralised rocks with all the hallmarks of a copper-gold-zinc VHMS deposit.
At Jibal Qutman, G&M's flagship project, Mineral Resources are estimated to total 28.4Mt at 0.80g/t gold for 733,045 contained ounces. The shallow oxide portion of this resource is being evaluated as a low capital expenditure heap-leach mine development.
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 instituted, and is further overhauling, 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.