KEFI Minerals plc Ethiopia Update (2622F)
February 19 2018 - 4:00AM
UK Regulatory
TIDMKEFI
RNS Number : 2622F
KEFI Minerals plc
19 February 2018
19 February 2018
KEFI Minerals plc
("KEFI" or the "Company")
Ethiopia Update
KEFI Minerals (AIM: KEFI), the gold and copper exploration and
development company with projects in the Kingdom of Saudi Arabia
and the Federal Democratic Republic of Ethiopia, provides an update
on the situation in Ethiopia following the resignation of the Prime
Minister last week.
KEFI's activities have been unaffected as regards its daily
interface with the various government agencies and with the
community at Tulu Kapi. Everyone we deal with appears to regard the
Prime Minister's resignation as a sincere step to the facilitation
of broader democratic representation in Government. The
concurrently announced State of Emergency appears generally
regarded as a preventative measure to ensure peace and order during
the leadership transition.
Meanwhile, the Ethiopian Ministry of Mines, Petroleum and
Natural Gas has signed off the transfer of the mining licence from
KEFI Minerals (Ethiopia) Limited ("KME") to Tulu Kapi Gold Mines
Share Company Limited ("TKGM"), the jointly-owned project company
now owned by the Government of Ethiopia (via the Ministry of
Finance and Economic Cooperation) and KME. TKGM's joint
KEFI-Government Board of Directors has approved the business plan
for the mine development to commence as soon as the regulatory
authorities allow TKGM's financing agreements to be finalised and
implemented. A key feature of the TKGM business plan is for local
people to be trained as the operators, with over 1,000 jobs being
created through the region around Tulu Kapi during
construction.
The Company believes its finance plans remain unaffected because
it has targeted certain regional financiers (both debt and equity),
including some who already have a long-term presence in
Ethiopia.
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 +44 20 3470 0470
Brandon Hill Capital Ltd (Joint
Broker)
Oliver Stansfield, 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
IFC Advisory Ltd (Financial
PR and IR)
Tim Metcalfe, Heather Armstrong +44 20 3934 6630
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.
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 1,100 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.
To date, G&M has conducted preliminary regional
reconnaissance and has had five exploration licences ("ELs")
granted, including Jibal Qutman and the 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, 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 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 company news service from the London Stock Exchange
END
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