TIDMKEFI
RNS Number : 9092F
Kefi Minerals plc
26 February 2015
26 February 2015
KEFI Minerals plc
("KEFI" or the "Company")
UPDATE ON FINAL TRANCHE OF PLACING
Completion of GBP4.9m placing on track following satisfaction of
key conditions
Further to the announcement of 26 November 2014, KEFI Minerals
plc (AIM: KEFI), the gold exploration and development company with
projects in the Kingdom of Saudi Arabia and the Democratic Republic
of Ethiopia, is pleased to announce that the third and final
tranche of the placing (the "Third Placing") is on schedule to
complete by the pre-agreed long stop date of 16 March 2015
following the satisfaction of a number of conditions. This will
constitute the completion of the conditional placing to raise
GBP4.9 million, before expenses, through the issue of up to
420,769,231 new Ordinary Shares by way of a three-stage placing
through Brandon Hill Capital Ltd ("Brandon Hill" - formerly
Fox-Davies Capital Ltd) (the "Placing") as approved by KEFI
shareholders on 15 December 2014.
The Placing proceeds are primarily intended to fund the Company
through the next phase of its development with the majority of
funds to be expended on progressing the flagship Tulu Kapi project
in Ethiopia to the point in mid-2015 where it is planned that full
development funding be arranged. KEFI is currently in positive
negotiations with a number of financial institutions to provide the
requisite debt project finance to fund the restart and will update
the market in due course. At the expected issue price for the Third
Placing, Perth Partners' Goldfields Resources Fund would become
KEFI's largest shareholder with 15.7% and sit alongside other
recently introduced cornerstone investors, Odey and Standard
Life.
The First Placing Shares were conditionally placed with certain
existing shareholders (raising GBP0.8 million) and the Second
Placing Shares were conditionally placed with certain Directors and
existing Shareholders (raising GBP1.1 million) at 1 pence per
share. The First Placing Shares were admitted to trading on AIM on
2 December 2014 and the Second Placing Shares were admitted to
trading on AIM on 16 December 2014.
The Third Placing Shares have been conditionally placed with
Perth Partners, a new cornerstone investor, acting for Goldfields
Resources Fund, a new mining finance sub-fund of Perth Global
Funds, an Irish-incorporated company. KEFI Minerals will be the
fund's maiden investment. The Third Placing Shares (raising GBP3
million) will be determined by the higher of a pre-set price of 1.3
pence per share or the VWAP of the Ordinary Shares for the 20
trading days immediately prior to the date of allotment of the
Third Placing Shares, which is expected to be on or before 16 March
2015. In light of market conditions and the current share price, it
is expected therefore that the Ordinary Shares will be issued at
1.3 pence per share as per the agreement.
The Company is pleased to confirm that the following conditions
to the Third Placing have now been satisfied:
(i) Second Admission becoming effective;
(ii) authorisation of Goldfields Resources Fund by the Central Bank of Ireland; and
(iii) there being no legal or regulatory provision applicable to
the Goldfields Resources Fund, to Perth Global Funds or to Perth
Partners which prohibits any of those parties subscribing for the
Third Placing Shares.
The Board of KEFI has been notified by Goldfields Resources
Fund/Perth Global Funds that it has received confirmations of
subscriptions from its own investors and that it expects to provide
KEFI with the requisite cleared funds on or before 13 March 2015 so
that the Third Admission of 16 March 2015 may become effective by
the long stop date in the Placing Agreement.
The Company will provide an update in relation to the
confirmation of receipt of cleared funds and the date of Third
Admission in due course.
Harry Anagnostaras-Adams, Executive Chairman of KEFI Minerals,
added: "We continue along the targeted financing path for our Tulu
Kapi gold project in Ethiopia. We are also making progress on
identifying appropriate mining contractors and existing processing
plants worthy of consideration for use at Tulu Kapi to help further
reduce our funding requirements. In the meantime, we look forward
to welcoming Perth Global Funds and thank them for their support as
we advance towards the commencement of development at Tulu
Kapi."
Definitions in this announcement are the same as those included
in the Company's circular dated 26 November 2014 available on the
Company's website at www.kefi-minerals.com.
Enquiries
KEFI Minerals plc
Harry Anagnostaras-Adams (Executive
Chairman) +357 99457843
Jeff Rayner (Exploration Director) +905 339281913
SP Angel Corporate Finance
LLP (Nominated Adviser)
+44 20 3470
Ewan Leggat, Katy Birkin 0470
Brandon Hill Capital Ltd (Joint
Broker)
Oliver Stansfield, Jonathan +44 20 3463
Evans 5000
finnCap Ltd (Joint Broker)
Joanna Weaving, Christopher +44 207 220
Raggett 0500
Luther Pendragon (Financial
PR)
Harry Chathli, Claire Norbury +44 207 618 9100
Further information on KEFI Minerals is available at
www.kefi-minerals.com
Further background on Perth Global Funds and the Goldfields
Resources Fund is available on www.perth-partners.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 2 Moz (95% of Tulu Kapi's 1.9 Moz and 40% of Jibal
Qutman's 0.6 Moz) Au Mineral Resources (JORC 2012) plus significant
resource growth potential. KEFI is targeting for production at
these projects to generate cash flows for further exploration and
expansion as warranted, recoupment of development costs and, when
appropriate, dividends to shareholders.
Expected milestones for the remainder of 2015 at Tulu Kapi
include:
-- Receipt of Mining Licence in Q1 2015
-- Independently refined and verified Ore Reserves, mine plan, capex, opex & closure costs
-- Independently updated Definitive Feasibility Study for banking purposes
-- Formalisation of bank syndicate, agreement of final terms for project finance
-- Full development funding and commencement of construction
In addition, during 2015 KEFI anticipates submitting a Mining
Licence Application for Jibal Qutman in Saudi Arabia through its
joint venture company, Gold & Minerals Ltd ("G&M").
KEFI in Ethiopia
KEFI has 100% ownership of the Tulu Kapi licence in western
Ethiopia and is at an advanced stage in refining the development
plan for the project, aimed at reducing the previously planned
capital and operating expenditure. Detailed research has yielded
encouraging results and has been summarised in recent Company
announcements.
At the end of 2013, the Ethiopian Government improved the fiscal
regime applying to the gold sector, and Tulu Kapi in particular.
This included lowering the income tax rate for mining (to 25% from
35%); settling of repayment schedule for inherited VAT liability
(over three years rather than up-front); the removal of VAT on
future exploration drilling expenditure; lowering royalty on gold
mining (to 7% from 8%); accelerating the depreciation of historical
and future capital expenditure (over four years); and clarifying
the workings of the Government's 5% free-carried interest so that
it does not impede conventional project financing terms.
KEFI 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
Shield. KEFI has a 40% interest in the G&M and is the operating
partner. To date, the G&M has conducted preliminary regional
reconnaissance and has had five Exploration Licences ("EL")
granted, including Jibal Qutman and the recently granted "Hawiah
EL" that contains over 5km of outcropping gossans developed on VMS
altered and mineralised rocks.
G&M holds 23 Exploration Licence Applications that cover an
area of approximately 1,484km(2) . 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 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.
-Ends-
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCLELLLELFEBBQ
Kefi Gold And Copper (LSE:KEFI)
Historical Stock Chart
From Apr 2024 to May 2024
Kefi Gold And Copper (LSE:KEFI)
Historical Stock Chart
From May 2023 to May 2024