KEFI Gold and Copper plc (LON:KEFI), the gold and copper exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, has announced that at today’s General Meeting of the Company, Executive Chairman Harry Anagnostaras-Adams will make the following statement:
“Since our AGM in August this year, KEFI has maintained an aggressive yet carefully risk-managed approach to maintain momentum. In Ethiopia we remain set to commence development of our Tulu Kapi Gold Project early in the New Year, with production starting in late 2022; and in Saudi Arabia we remain on track to expand the maiden JORC resource at our copper-gold discovery, Hawiah.
Our focus and tenacity has established KEFI as the leading private sector minerals explorer-developer in both Ethiopia and Saudi Arabia. As such we are at the forefront of the gold and copper sector in the two largest countries within one of the world’s greatest under-developed mineral provinces – the Arabian-Nubian Shield. This has been accomplished at a time when the mineral sectors of both countries are being ambitiously overhauled by their respective governments to de-regulate and stimulate growth. Our timing also coincides with a significant cyclical upturn in gold and copper, KEFI’s principal metals. This backdrop is indeed refreshing after many years of the sector being in the cyclical doldrums and also timely given our host countries’ proactive steps to boost their respective mining sectors.
The last few months have brought some unusual challenges, which we have managed successfully without business disruption, including a number of temporary COVID-induced lockdowns of teams and activities in both countries (now lifted) and also the internationally reported conflict in northern Ethiopia, which led us to elevate security as a precautionary measure. I am pleased to report that the Ethiopian Government has now declared that the security issues in northern Ethiopia, some 1,000km from Tulu Kapi, remained localized to that region and have since been addressed (as widely reported in the international media).
In Ethiopia, all Tulu Kapi Gold Mines Share Company (“TKGM”) directors and management have been on the ground serving and supporting the financing syndicate and the dedicated teams of the many government agencies involved. We have completed an intense due diligence work programme to serve the financiers’ procedures for their respective approvals of the Project start-up. This culminated last week with a site inspection and meetings with TKGM’s site-based teams, the community and local government. We express our particular gratitude to the Minister of Mines and Petroleum, Eng. Takele Uma Banti, for co-hosting last week’s Tulu Kapi visit.
We are on track for the principal outstanding Ethiopian Project financing-related matters to be completed in the coming weeks, with financial closing and the start of development planned for Q1 2021, leading to the continuing goal for the start of gold production during Q4 2022.
Looking forward, the key steps for the first half of 2021 include the following:
· In Ethiopia:
o Tulu Kapi Gold Project:
§ Finance:
· Approval and execution of detailed finance documentation
· Receipt of Project equity/subordinated debt subscriptions (senior debt drawdown follows in H2 2021)
§ Community:
· Continue building new starter houses and associated infrastructure for resettled community
· Consultations and payment of compensation for resettled community
· Employment, training and community development schemes for broader community
§ Construction:
· Continue access road and electricity connection from main grid to site
· Start bulk earthworks for on-site infrastructure
· Start fabrication of plant components in various factories internationally
o Tulu Kapi District exploration:
§ Granting of exploration licenses
§ Commencement of field programmes
· In Saudi Arabia:
o Hawiah Copper-Gold-Zinc-Silver Project:
§ Complete current drilling phase
§ Report expanded mineral resource
§ Update Preliminary Economic Assessment
o Regional Exploration Projects:
§ New licenses granted
§ Commencement of field programs
In summary, we remain focused on KEFI owning 65% or more of TKGM producing 190,000 oz pa, with production starting in Q4 2022 in Ethiopia, and we continue to advance our copper and gold discoveries in Saudi Arabia.
These are exciting times for KEFI and we believe we are very well positioned as we enter 2021.”
