KEFI Gold and Copper Plc (LON:KEFI), the gold and copper exploration and development company focused on the Arabian-Nubian Shield, has provided an update on recent positive progress.
Tulu Kapi Project launch update
· Preparations for full launch of the Tulu Kapi Gold Project are advancing across all fronts for signing this quarter of the assembled detailed definitive documentation.
· Property surveys for Phase 1 Resettlement (c.350 properties including c.130 households) are now being reviewed against strict verification standards and procedures. The phased compensation and subsequent resettlement will be in compliance with Ethiopian Law and World Bank IFC Performance Standards.
· Updated tender prices for mining services are being evaluated.
· Construction of initial site facilities is underway, including expanded water supply and camps for construction and security.
· The focus now is on completing the following this quarter:
· Government approvals of residual administrative matters, including AFC membership ratification by the Ethiopian Parliament; and
· Independent certifications for the project’s fixed price construction contracts, security, community commitments and overall schedule.
· All contractors have been asked to prepare to proceed from the end of this quarter.
· Operational management being installed at project company Tulu Kapi Gold Mines S.C. (TKGM), with Simon Cleghorn as Managing Director (former COO of a major Kazakh mining group) and Theron Brand as Finance Director (former financial head of Namibian mining groups).
Tulu Kapi Project Finance plan progress
KEFI continues to optimise the finance syndicate at the subsidiary level, as follows:
US$300 million capital requirement net of capex already spent and of contractor capital commitments comprising:
| US$240 million: US$60 million: | Debt Capital from secured lenders From either, or a combination of, the following, with any surplus funds to be available for contingency reserves as well as growth opportunities: | |
| – US$-linked ‘EthioPrefs’ to be issued by a newly-formed Ethiopian holding company designed for qualified Ethiopian and other African investors. Listing of the EthioPrefs on the newly launched Ethiopian Securities Exchange is expected to follow in due course; and- The sale of a 15% shareholding in the Gold and Minerals Company (GMCO) joint venture in Saudi Arabia held by the Company. Short-listed parties are now due to review the Jibal Qutman Stage 1 development Definitive Feasibility Study (“DFS”) with a view to finalising their investment and financing proposals. A key DFS milestone since the latest KEFI RNS for Jibal Qutman (see the Company’s announcements on 26 February 2025) was GMCO establishing Jibal Qutman’s local water supply. Development plans will now be finalised with GMCO shareholders, financiers and regulatory authorities. | ||
KEFI Gold and Copper Plc Founder and Executive Chairman, Harry Anagnostaras-Adams, commented: “The preparations for full launch of Tulu Kapi Gold Project are advancing across all fronts for signing this quarter of the assembled detailed definitive documentation. The economic metrics continue to improve and the stakeholder support is across-the-board.
“Excluding the potential of the underground resources at Tulu Kapi, the business plan model projections results in over seven years of production, averaging 167,000 oz per year, generating a net cash flow to project shareholders of US$1.1-1.6 billion at gold prices of US$2,400-3,000/oz over the life of the project.”
