Kefi Gold and Copper PLC Related Party Transaction (9402A)
June 07 2021 - 1:00AM
UK Regulatory
TIDMKEFI
RNS Number : 9402A
Kefi Gold and Copper PLC
07 June 2021
7 June 2021
KEFI Gold and Copper plc
("KEFI" or the "Company")
Related Party Transaction
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, reports a
Related Party Transaction.
As part of the launch of its overall senior executive
remuneration and incentivisation plan for the Company's next
chapter of organisational development, the Company has entered into
arrangements with executive directors Harry Anagnostaras-Adams and
John Leach whereby certain cash bonuses will be paid on the
achievement of defined and specific milestones in relation to the
Tulu Kapi project as follows:
Milestones for cash bonus Harry Anagnostaras-Adams John Leach
Tranche 1: Arranging a long term project finance US$500,000 US$500,000
facility for the Tulu Kapi Project and, not
later than 31 December 2021, receipt by the
Company of at least the first US$20 million
of project funding.
------------------------- -----------
Tranche 2: Completion of the Project within US$500,000 -
the Project budget approved by the senior
lenders
------------------------- -----------
Tranche 3: Upon the sale and physical delivery US$500,000 -
of 35,000 ounces of gold equivalent
------------------------- -----------
The cash bonus payable to Mr. Anagnostaras-Adams and Mr. Leach
is considered a related-party transaction for the purposes of Rule
13 of the AIM Rules for Companies. The Directors independent of the
cash bonus consider, having consulted with SP Angel Corporate
Finance LLP, the Company's nominated adviser, that the cash bonus
is fair and reasonable in so far as KEFI's shareholders are
concerned.
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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