KEFI Minerals (LON: KEFI), the gold exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, has provided an update in respect of the Company’s Tulu Kapi Gold Project in Ethiopia.
KEFI confirms the receipt by Tulu Kapi Gold Mines Share Company (“TKGM”) of all the Government permits and independent consultants reports required for closing the Project equity financing and triggering the development of the Project. The only outstanding matter now is for the Ethiopian Government to resolve certain internal administrative matters.
KEFI has also received re-confirmation from its partners, and TKGM from its contractors, of their respective commitments to proceed as soon as the Government has resolved its internal administrative arrangements in a manner which does not impede other shareholders’ protections.
The Company understands that meetings are taking place daily within the Ethiopian Government to resolve these internal matters which pertain to how it manages its shareholding in TKGM – a high-profile public-private partnership in a new industrial sector for the country. As previously reported by the Company, the budget for the Project investment has already been approved by the Ethiopian Parliament and the associated infrastructure work for which it pays has already commenced. TKGM has the potential to be the largest single export-generator for Ethiopia.
The Minister for Mines and Petroleum of the Federal Democratic Republic of Ethiopia, Dr Samuel Urkato, has confirmed to KEFI that the Government is keen to proceed with the Project and has authorised the Company to report to its shareholders that:
“The Tulu Kapi project remains of the highest priority for the Government at all levels and that there is just one outstanding administrative matter, internal to the Government, which will be resolved shortly, so that the development may commence.”
The Company will provide further updates as appropriate and looks forward to starting development of the Project as soon as the Company receives the confirmation that these administrative matters have been resolved within the Government.
Commenting, Mr Harry Anagnostaras-Adams, Executive Chairman of KEFI Minerals, said,
“Whilst it is disappointing we will not be able to close the Project equity funding before the end of October 2019, as we had previously envisaged, we appreciate the enormous importance of the Project to the Ethiopian Government and that they need to complete their internal processes. All stakeholders continue to work very hard and we look forward to this being resolved shortly so that the Project equity funding can be closed and development of the Project started.”