KEFI Minerals plc Project Financing Update (6629S)
March 13 2019 - 2:00AM
UK Regulatory
TIDMKEFI
RNS Number : 6629S
KEFI Minerals plc
13 March 2019
13 March 2019
KEFI Minerals plc
("KEFI" or the "Company")
Project Financing Update
KEFI Minerals (AIM: KEFI), the gold exploration and development
company with projects in the Federal Democratic Republic of
Ethiopia and the Kingdom of Saudi Arabia, is pleased to announce
that, following the Ethiopian Government's commitments to allow the
Company's Tulu Kapi Gold Project (the "Project") infrastructure
financing and overall development plan to proceed as previously
outlined, the Company has triggered the next stages of its
engagement with its bond arranger and exclusive placing agent, ACT
Capital GmbH ("ACT Capital").
In light of the overall progress with Government clearances,
Project due diligence and indicative structuring and pricing, the
next stages include the formation of KEFI's Luxembourg-based
company which would issue the planned listed bond. The bond issue
will be subject to the satisfaction of compliance procedures,
including those of the various institutions/banks and listing
authorities, and then the successful private placement of the
planned listed bond. All these processes are being co-ordinated
with other Project matters by KEFI within the Project consortium
which includes the principal contractors, Lycopodium (process
plant), Ausdrill/AMS (mining) and MKS/PAMP (gold refining) and the
Ethiopian Project equity partners in the Government and private
sectors. All consortium members have responded enthusiastically to
the Ethiopian Government's "green light" to trigger the Project
after KEFI's Managing Director, Mr. Harry Anagnostaras-Adams, met
the Ethiopian Prime Minister, Dr. Abiy Ahmed, as detailed in the
Company's announcement of 5 March 2019.
ACT Capital is a Switzerland-based boutique financing arranger
with complete capital sourcing capability and a focus on the
infrastructure markets. It specialises in advising small and
mid-size companies that require private debt and alternative
financing by providing solutions that are adapted to the
challenging environments of Emerging and Frontier Markets. ACT
Capital manages assignments from inception stage through to final
private placement and disbursement.
Enquiries
KEFI Minerals plc
Harry Anagnostaras-Adams (Managing Director) +357 99457843
John Leach (Finance Director) +357 99208130
SP Angel Corporate Finance LLP (Nominated
Adviser and Joint Broker) +44 20 3470 0470
Jeff Keating, Soltan Tagiev
Brandon Hill Capital Ltd (Joint Broker) +44 20 7936 5200
Oliver Stansfield, Jonathan Evans
SVS Securities Plc (Joint Broker)
Tom Curran / Ben Tadd +44 (0) 203 700 0078
IFC Advisory Ltd (Financial PR and IR) +44 20 3934 6630
Tim Metcalfe, Heather Armstrong
Notes to Editor
KEFI Minerals plc
KEFI is focused primarily on the advanced Tulu Kapi Gold Project
development project in Ethiopia, along with its pipeline of other
projects within the highly prospective Arabian-Nubian Shield. KEFI
targets that production at Tulu Kapi generates cash flows for
capital repayments, further exploration and expansion as warranted
and, when appropriate, dividends to shareholders.
KEFI Minerals in Ethiopia
Ethiopia is currently undergoing a remarkable transformation
both politically and economically.
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 over 1,000 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 Gold and Minerals Ltd ("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.
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 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.
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END
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