REG - Kefi Gold and Copper - Legal Claims Against KEFI Dismissed

KEFI Gold and CopperAnnouncement

21/01/2025 07:00

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RNS Number : 0268U  Kefi Gold and Copper PLC  21 January 2025

21 January 2025

KEFI Gold and Copper plc

 

("KEFI" or the "Company")

 

Legal Claims Against KEFI Dismissed

 

Reinforces Progress on Tulu Kapi Project Financing

 

KEFI (AIM: KEFI), the gold and copper exploration and development company
focused on the Arabian-Nubian Shield, is pleased to report that the English
High Court of Justice, King's Bench, has handed down its judgement in relation
to a case against the Company, detailed in the Company's 2023 Annual Report,
that dismisses all claims against KEFI and awards to KEFI all of its
counterclaims. This was the last outstanding attempt in a string of threats of
interference against KEFI, all of which have now been successfully dismissed.

 

As regards this reported judicial outcome, the King's Bench also noted that,
prior to the matter going to Court, any claims and accusations against KEFI's
Executive Chairman and the President of one of KEFI's banks were withdrawn.
 The Company has always considered the claims to be spurious and without
merit, but it is nevertheless helpful that the matter has been resolved in
KEFI's favour, so as not to interfere with the progress of the Company's Tulu
Kapi Gold project or potentially impose a material financial burden on the
Company.  This also extinguishes the need for independent certification of
readiness for finance closing in respect of this matter.

 

Tulu Kapi Project Financing - Update on certification and formalisation for
finance closing

 

KEFI has completed Early Works.

 

Both banks' 2024 credit approvals are now being updated for finalisation in
February 2025 as part of the certification and formalisation process preparing
the project for financial close at the end of Q1 2025 and then to launch all
Major Works as funds are drawn down in the approved sequence against the
disbursement requirements.

 

Notable recent progress in the certification and formalisation process
includes:

·    Receipt from the banks the proposed updated detailed terms and
conditions for an expanded secured loan package at US$240 million, instead of
the previous US$190 million as detailed in the Company's announcement on 6
November 2024;

·    All threatened and actual litigation now successfully dealt with;

·    Already-received approvals have satisfied all substantive conditions
precedent set out in 2022 upon restarting preparations to launch the Project
(after the lifting of Ethiopia's State of Emergency as per the Company's
announcements on 14 February 2022 and 30 June 2022). The formalisation process
is, for good order, wrapping up documentation for finance closing;

·    Detailed documentation in hand across all of the parties and issues;
and

·    Certain Major Works brought forward to further de-risk the Project:

o  Main Access Road started construction in Q4 2024 to more than halve travel
time from the bitumen highway and simplify journey management;

o  We have fully deployed teams for safety, security and community liaison,
involving both Government and private sector specialists;

o  Completed compensation for resettlement of a key land package and started
the property survey with approximately one third of land holders, to ensure
complete alignment before triggering Major Works; and

o  Triggered refreshment of fixed price lump sum components of construction
contracts, ahead of financial close at the end of Q1 2025.

 

KEFI Executive Chairman, Harry Anagnostaras-Adams, commented:

"The Tulu Kapi Gold Project has involved much 'precedent-setting' as the first
international project finance transaction in Ethiopia, which itself has
transitioned through democratic reforms and a focus on private sector
development. KEFI has been instrumental in negotiating reforms across the
board, from removing exchange controls to creating permanent security
protection. And Ethiopia has ignited a major growth spurt, particularly
emphasising the minerals sector.

 

"We are excited to now be wrapping up preparations to launch all Major Works
for our tightly risk-mitigated project - well worthwhile given the excellent
outlook for returns to all stakeholders."

 

 KEFI Gold and Copper plc
 Harry Anagnostaras-Adams (Executive Chairman)       +357 99457843
 John Leach (Finance Director)                       +357 99208130

 SP Angel Corporate Finance LLP (Nominated Adviser)  +44 (0) 20 3470 0470
 Jeff Keating, Adam Cowl

 Tavira Financial Limited (Lead Broker)              +44 (0) 20 7100 5100
 Oliver Stansfield, Jonathan Evans

 IFC Advisory Ltd (Financial PR and IR)              +44 (0) 20 3934 6630
 Tim Metcalfe, Florence Chandler

 3PPB LLC (Institutional IR)
 Patrick Chidley                                     +1 (917) 991 7701
 Paul Durham                                         +1-203-940-2538

 

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