Kefi Minerals plc KEFI granted Mining Licence (0606K)
April 13 2015 - 9:30AM
UK Regulatory
TIDMKEFI
RNS Number : 0606K
Kefi Minerals plc
13 April 2015
13 April 2015
KEFI Minerals plc
("KEFI" or the "Company")
ethiopian council of ministers approves TULU KAPI GOLD
PROJECT
Mining Licence and all major permits received as part of Mining
Agreement
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 official signing of the Mining Agreement ("MA") between
KEFI and the Ministry of Mines of the Democratic Republic of
Ethiopia for the Company's Tulu Kapi project in Ethiopia has now
taken place and that the MA is in force.
The Ethiopian Minister for Mines, Hon. Tolassa Shagi Moti,
commented: "Responsible mine development is a high priority for the
Government and hence we are pleased to have approved the Tulu Kapi
gold project. We acknowledge and appreciate KEFI's professionalism
and dedication in getting the project back on track. The joint
effort with our Ministry officials has also served to pave the way
for other mining projects to follow."
Harry Anagnostaras-Adams, Executive Chairman of KEFI Minerals,
added: "We are grateful for the co-operation, vision and support of
the Ethiopian Government. The granting of the Mining Licence is a
landmark achievement that enables us to begin development of this
high-value and low capex asset. In addition, the economic and
social benefits that Tulu Kapi can bring to Ethiopia are
significant. We remain on track for development to commence in 2015
leading to commissioning at the end of 2016 for production in
2017."
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 (Broker)
Oliver Stansfield, Jonathan +44 20 3463
Evans 5000
Luther Pendragon Ltd (Financial
PR)
Harry Chathli, Claire Norbury,
Oli Hibberd +44 207 618 9100
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:
-- Independently refined and verified mine plan
-- Independently verified capex, opex & closure costs
-- Independently verified Ore Reserves
-- 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
Exploration Licence that contains over 5km(2) 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-
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