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 today announced an update in respect of the Company’s Tulu Kapi Gold Project, part of the KEFI-operated Ethiopia joint-venture Tulu Kapi Gold Mines Share Company.
KEFI subsidiary TKGM has worked intensely with the Ethiopian Ministry of Mines (the “Ministry”) to expedite the Project and the Ministry has allowed until 8 July 2022 for full Project financing and launch commitments to be achieved.
H.E Minister Eng., Takele Uma, commented:
“We look forward to monthly progress reports from TKGM and to getting Tulu Kapi into production. Developing the world class minerals potential of Ethiopia is one of our country’s priorities.”
KEFI Gold and Copper Executive Chairman, Harry Anagnostaras-Adams, commented:
“We thank the Minister for his vision, patience and support. And we are proud to have the support of the Ethiopian Ministry of Mines. Our common agenda is to expedite development, production and economic benefits. I have no doubt that Ethiopia’s minerals sector has an exciting future.
“To have turned the corner in Ethiopia at the same time as our Saudi venture is taking off makes for a very promising 2022.”
Additional Project Updates
Security:
· the civil war has abated since peaking at the end of December 2021 and the Ethiopian state of emergency has been lifted;
· intense policing operations are being conducted in the areas around Tulu Kapi and other mining projects, which reflects the close collaboration between the authorities and the emerging minerals sector; and
· as from this month TKGM will recommence the Project development activities that were suspended in 2021 as a precautionary measure due to the security situation. Activities will include preparation of new host lands for resettling households and also accommodation for construction personnel. An appropriate security system is being installed in readiness for construction and operations.
Launch of the Project requires the following matters to be completed, which are all in process:
· external independent security assessment of the Project site, district and transport routes, over several months of uninterrupted Project preparation activities. This is expected to be possible from later this month given the situation on the ground;
· completing administrative arrangements with the Government regarding the Tulu Kapi project finance plans. These procedural matters include: (a) endorsement by the Ministry of the US$70 million which has historically been expended on exploration, pre-development costs and development; (b) direct agreement between the Ministry and the senior lenders in respect of their security over the Tulu Kapi mining licence; (c) confirmation by the Ministry of the areas in which KEFI subsidiary, KEFI Minerals (Ethiopia) Limited, has the right to conduct follow-up exploration on its historical discoveries to supplement the Mineral Resources of Tulu Kapi; and (d) the Government to confirm the right of both development banks to operate in Ethiopia as senior lenders under the same terms;
· the finance syndicate remains in place and on standby to finalise documents for signing. Subject to final construction pricing and document execution, capital requirements have already been catered for within the syndicate; and
· development management: the Ethiopia-based planning and permitting team was recently replaced by the development team in preparation for Project launch and building of the required c.1000-strong workforce over the next eighteen months.
