TIDMKEFI
RNS Number : 8025A
Kefi Gold and Copper PLC
04 June 2021
4 June 2021
KEFI Gold and Copper plc
("KEFI" or the "Company")
Tulu Kapi Operational Update
KEFI (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, is pleased to
provide an update with respect to the Company's Tulu Kapi gold
project ("Tulu Kapi" or the "Project").
Further significant progress has been made during May 2021 and
KEFI is currently focusing on completing preparations for full
Project launch after the Company's Annual General Meeting, which is
expected to be convened in due course for 30 June 2021. The Company
remains on track to commence Project commissioning in late 2022 and
to reach full production by mid-2023, in line with previous
guidance.
Highlights of recent activities include:
-- The Project company, Tulu Kapi Gold Mines Share Company
("TKGM") has submitted to the Ethiopian regulatory authority, for
its formal confirmation of compliance as part of the Project
finance requirements, an updated detailed Project development and
production plan. Whilst final approval of this updated plan is
awaited as a condition precedent of the Project financing, TKGM has
exchanged formal confirmations with the licencing authority
regarding TKGM's commitment to honour the already outlined Project
timetable;
-- A new Project mining contractor, Corica Group, which is now
the largest mining contractor in Africa, has been appointed,
replacing the previous mining contractor on better terms after
re-tendering of the contract. A letter of intent has been signed
with them covering the major works package due to commence its
procurement any time from July 2021;
-- The early works programme with principal process design and
construction contractor, Lycopodium Limited, has commenced this
month and the major works package has been agreed to commence any
time from July 2021;
-- Responses are up to date in respect of the senior lenders'
due diligence requirements for credit approval. The timetable for
Project finance remains for execution of detailed documentation as
soon as possible after the KEFI AGM on 30 June 2021, then equity
subscriptions for launch of full development, followed by debt
drawdowns during Q4 2021; and
-- 150 local personnel have been employed to prepare new host
lands. TKGM have commenced compensation procedures for the small
part of the community to be resettled that occupies the site for
the planned electricity substation and starter homes have been
fabricated and are being delivered to site for assembly.
The Company looks forward to making further announcements as the
Project progresses.
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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