TIDMKEFI
RNS Number : 7533Y
Kefi Gold and Copper PLC
17 May 2021
17 May 2021
KEFI Gold and Copper plc
("KEFI" or the "Company")
Statement re Press Speculation
KEFI Gold and Copper (AIM: KEFI), the gold and copper
exploration and development company with projects in the Federal
Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia,
notes the recent media commentary in Ethiopia regarding an
Ethiopian Mines Ministry briefing held on 14 May 2021 at which it
is understood reference was made to the cancellation of licences
awarded to 27 mining and exploration companies and which included a
verbal reference by a ministry official to an intention to issue
warning letters to three other companies, including 'Tulu Kapi Gold
Mines'.
Neither KEFI nor its subsidiaries, KEFI Minerals (Ethiopia)
Limited and Tulu Kapi Gold Mines Share Company ("TKGM"), nor any of
their associate companies, are aware of any breach of any licence
conditions and have not received any such warning letter nor had
notice of such an intended letter flagged to them formally or
informally.
The Directors of KEFI believe they have an especially close
working relationship with the Ethiopian Government, which is a
shareholder in TKGM at both the Federal and Oromia Regional
levels.
Last week, formal meetings of the TKGM shareholders, board of
directors and Project task force (comprising senior representatives
of TKGM and all involving Ethiopian Government agencies) were held
which agreed the tasks and timetable for development of the
Company's Tulu Kapi gold project ("Tulu Kapi" or the "Project") to
commence in the coming months.
It was agreed by all that, in this time of heightened anxiety
around arguably the most important democratic elections in
Ethiopia's history (which are scheduled for the end of June 2021),
it remains most important for all parties joint focus to remain on
reinforcing the collaborative efforts to complete the preparations
for Project launch.
KEFI and TKGM are particularly grateful for the Ethiopian
Government's efforts at all levels regarding the jointly-owned
Project and its undertakings to complete its requisite final
preparations for development to commence. Notwithstanding the
obvious distraction of election time, it was agreed last week to
upscale security around the Project, endorse KEFI's historical
Project expenditure, confirm KEFI's exploration licences and
confirm the construction schedule for the offsite infrastructure
(roads and electricity connection). KEFI acknowledges and
appreciates the huge effort required from such busy Government
agencies.
All parties involved in the Project are extremely busy closing
the financing and development preparations as outlined in the
Company's recent announcements. KEFI consider it a privilege to
have the opportunity to play a small part in the overwhelmingly
positive transformation that is occurring in Ethiopia and KEFI are
extremely proud that our joint KEFI-Ethiopian Government owned
Project remains on schedule to launch shortly with the goal of
ultimately contributing over US$250 million per annum to Ethiopia's
export revenues.
KEFI remains focused on completing preparations for full Project
launch as soon as possible after the Company's Annual General
Meeting, which will be convened in due course for a date before the
end of June 2021.
The Company will make further announcements as appropriate.
Enquiries
KEFI Gold and Copper plc
Harry Anagnostaras-Adams (Executive Chairman) +357 99457843
John Leach (Finance Director) +357 99208130
SP Angel Corporate Finance LLP (Nominated
Adviser and Joint Broker) +44 (0) 20 3470 0470
Jeff Keating, Adam Cowl
Brandon Hill Capital Ltd (Joint Broker) +44 (0) 20 7936 5200
Oliver Stansfield, Jonathan Evans
IFC Advisory Ltd (Financial PR and IR) +44 (0) 20 3934 6630
Tim Metcalfe, Florence Chandler
Notes to Editor
KEFI Gold and Copper 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 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, together with assembling the full
funding consortium and set the conditional terms for the
development funding package of c.US$221 million.
Estimates include gold production of c.190,000oz pa. 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 in the Kingdom of Saudi Arabia
In 2009, KEFI formed Gold & Minerals Limited ("G&M") in
Saudi Arabia with local Saudi partner, ARTAR, to explore for gold
and associated metals in the Arabian-Nubian Shield. KEFI has a 34%
interest in G&M and is the operating partner.
ARTAR, on behalf of G&M, holds over 16 Exploration Licence
(ELA) applications pending the introduction of the new Mining Law.
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
mineral 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.
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END
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