KEFI Minerals plc Progress with Tulu Kapi Project Finance (5258X)
November 27 2017 - 1:00AM
UK Regulatory
TIDMKEFI
RNS Number : 5258X
KEFI Minerals plc
27 November 2017
27 November 2017
KEFI Minerals plc
PROGRESS WITH TULU KAPI PROJECT FINANCE
KEFI Minerals (AIM: KEFI) ("KEFI" or the "Company"), confirms
that it has made considerable progress towards finalising the
US$140 million infrastructure finance lease facility for the
development of the Tulu Kapi Gold Project (the "Project").
Major milestones achieved included the documentation having been
lodged with the Ethiopian Government for approval and the Ethiopian
Minister of Finance and Economic Development has formalised budget
approval for the Government to proceed with their construction and
investment roles for the Project.
The proposed financing structure has been refined in response to
soundings with potential investors in the listed bonds and the
placing of the bonds is now expected to commence during Q1 2018,
with drawdown expected soon thereafter conditional on equity
capital subscription. The c. US$20 million residual equity
requirement will then be triggered and may comprise, in order of
preference, equity issues at one or more of the intermediate,
project, or parent company levels.
Project construction is expected to take place over 2018-2019
and production commissioning at the end of 2019.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
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,
Soltan Tagiev +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 and Charlie
Cryer +44 20 3440 6800
Beaufort Securities Ltd (Joint
Broker)
Elliot Hance +44 20 7382 8300
IFC Advisory Ltd (Financial
PR and IR)
Tim Metcalfe, Heather Armstrong +44 20 3053 8671
NOTES TO EDITORS
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 are that gold
production may be brought forward to c. 144,000 oz pa over 7 years
by increasing processing capacity, as compared with the DFS
estimates of c. 100,000oz pa for a 10-year period. All-in
Sustaining Cost estimates (including operating, sustaining capital
and closure but not including leasing and other financing charges)
remain <US$800/oz. Tulu Kapi's Ore Reserve estimate totals
15.4Mt at 2.1g/t gold, containing 1.1Moz. Ongoing refinements will
be reported as they get finalised.
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.
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. 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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