# KEFI Gold and Copper provides an operational update

- Link: https://www.directorstalkinterviews.com/kefi-gold-and-copper-provides-an-operational-update/4121002487
- Published: 2021-06-21T07:10:15+01:00
- Author: Giles

**KEFI Gold and Copper plc** ([LON:KEFI](https://www.directorstalkinterviews.com/company/kefi-gold-and-copper/kefi.l)),
the gold and copper exploration and development company with projects in the Federal
Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, has today provided
an operational update.

**Ethiopia**

Today is election day in Ethiopia. These are widely regarded as the most important
elections in the country’s history.  The electioneering atmosphere in the lead-up
around the country has been one of vibrant, but peaceful campaigning, reflecting
very positively on the reforms over recent years.  Ethiopia remains amongst the 
highest growth countries in Africa and the world, whilst it continues to push its
agenda of liberal and democratic reform.

**Tulu Kapi Project Finance**

The Tulu Kapi Gold Project (the “Project” or “Tulu Kapi”) remains on track with 
previous guidance and KEFI, through its subsidiary Tulu Kapi Gold Mines Share Company(“
TKGM”), has presented its Project finance syndicate and submitted its Project finance
plan to the Ethiopian central bank (“National Bank of Ethiopia”, or “NBE”) for permission
that it may proceed as outlined.  This follows a long, thorough and rigorous due
diligence process by the Senior Lenders.

Whilst the NBE conducts its review, the other outstanding administrative details
are being progressed with the various Ethiopian Government agencies including, the
Ministry of Mines and Petroleum (“MOMP”), Ministry of Finance, Ethiopian Roads Authority
and Ethiopian Electricity Power Corporation.  These are normal compliance procedures
to enable KEFI/TKGM and its syndicate of financiers and contractors to proceed to
financial closing, which includes, _inter alia_, execution of detailed documentation,
subscription of the asset-level equity funds and triggering full development, with
debt funds to be disbursed later this year in compliance with the Senior Lenders
specified conditions.

These procedural matters include requests for finalising confirmations of registration
of historic investment, establishment of correspondent bank account arrangements,
confirmation of construction schedules for road and electricity, and various other
administrative matters already agreed in principle.

Starting full development of the Project is the highest priority for KEFI and the
Ethiopian Government. All key stakeholders are pushing hard to finalise preparations
and the Company has undertaken to the MOMP that, upon timely receipt of these confirmations,
KEFI will push to financial closing by the end of July 2021, or as near as possible
thereto given the local document registration procedures and the COVID-affected 
limitations of syndicate parties’ physical locations.

**Recent Tulu Kapi Project Activities**

KEFI continues to oversee the physical preparations for full development to be triggered
at financial closing, such as:

| •     | Clearing of new host lands for community members to be resettled; | 
| •     | Overseeing the early works programme of detailed engineering and procurement, by principal construction contractor Lycopodium; | 
| •     | Supporting the planning and procurement programmes of mining services contractor Corica; | 
| •     | Overseeing the ‘new access road’ and ‘electricity connection’ works contracts; under which surveys and procurement has been completed; | 
| •     | Triggering compensation procedures for the first resettlers at the Tulu Kapi electrical substation site; and | 
| •     | Recruitment of further key personnel for the next stage of the Project.   |

**Saudi Arabia**

**Hawiah Gold Project**

KEFI’s operations in Saudi Arabia are conducted through its 34% owned joint-venture
company, Gold & Minerals Ltd (“G&M”), where KEFI is the operating partner.

G&M are working to finish the Phase 4 drilling programme in Q3 2021 with the goal
of reporting an expanded and upgraded Mineral Resource.  With Ramadan having ended,
drilling since late May 2021 has been 24/7 with three rigs on site.

The Preliminary Feasibility Study for the potential start of development of the 
Hawiah deposit in 2023 continues, and other recent activities have included the 
following:

| •     | Completion of the Environmental and Social Baseline Study; | 
| •     | Metallurgical testing progressing with reasonable recoveries so far being indicated for all principal metals, copper, gold, zinc and silver; and | 
| •     | Completion of the exploration camp construction. |

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