REG - Kefi Gold and Copper - New Member Completes Tulu Kapi Project Syndicate

KEFI Gold and CopperAnnouncement

28/04/2025 07:00

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RNS Number : 3264G  Kefi Gold and Copper PLC  28 April 2025

28 April 2025

KEFI Gold and Copper plc

 

("KEFI" or the "Company")

 

New Syndicate Member Completes Tulu Kapi Project Syndicate

 

KEFI (AIM: KEFI), the gold and copper exploration and development company
focused on the Arabian-Nubian Shield, is pleased to announce the introduction
of BCM Group ("BCM") as a Project syndicate member. BCM, a +50-year-old
company, was an early mover from Western Australia into African mining, is
based in Ghana and has several mining services contracts in projects in which
it has an ownership interest.

 

Highlights

 

 ·         BCM has been appointed as 'Preferred Mining Contractor' for the Tulu Kapi Gold
           project ("Tulu Kapi" or the "Project"), subject to the completion of the
           reciprocal due diligence and approvals.
 ·         At Project Finance signing, BCM has confirmed its intention to contribute
           US$23 million of pre-production costs (estimate based on designated portion of
           civil works and mining works) of Equity Risk Notes, repayable in cash or
           convertible post commencement of production at Tulu Kapi.
 ·         Project development budget now covered by equity and debt conditional
           commitments pending final cost updates.
 ·         BCM's inclusion in the Project funding syndicate means KEFI is no longer
           motivated to dispose of its interests in Saudi Arabia, although the Company
           will continue with ongoing discussions and choose the most beneficial outcome.

 

BCM has been appointed Preferred Mining Contractor on the basis of it having
now offered full mining services on the best available terms, undertaken to
proceed with procurement of the mining fleet for supply to the Project and
confirmed its intention to bid for civil works contracts. Furthermore, BCM has
also confirmed its intention to contribute a portion of pre-production costs,
currently estimated at US$23 million, of equity risk capital in the form of
Equity Risk Notes ("ERN") to be fully committed alongside all Project
Syndicate members at Project Finance Signing. The ERN would be repaid in cash
after the senior lenders, or convertible by either party into KEFI ordinary
shares at the future KEFI share price, not earlier than at the commencement of
production. BCM's appointment remains subject to completion of the reciprocal
due diligence and approvals.

 

These arrangements would fulfil all the development funding requirements of
the Project against the longstanding budget of US$320 million, which the
Company is currently reconfirming with all relevant suppliers and service
providers, particularly the fixed price lump sum elements. Following this
intended arrangement with BCM, the Company now has sufficient demand within
the Project financing syndicate, which duly reinforces KEFI's confidence about
closing the full financing. Once costings and final participations are
finalised, KEFI will likewise finalise the scheduling of drawdown and
disbursement by respective currency and party.

 

Cost updates and certifications are currently being finalised ahead of the
signing of detailed definitive agreements this quarter. Once these costs are
certified, the Company will be able to sign and launch Major Works within the
following month or so and lock-in the fixed price lump sum components.

 

The various Government and other formal processes (including AFC country
membership) are on track and working towards the same timetable.

 

Saudi Arabia JV Update

 

The intended support from BCM in subscribing for an ERN makes it clear that
the Company is under no pressure to dispose of its 15% shareholding in its
Saudi Arabian joint-venture, Gold and Minerals Company Limited ("GMCO"). As
previously reported, the Company has received significant interest in its
Saudi portfolio and will now continue these discussions with the benefit of
time prior to finalising with its Saudi majority partner, ARTAR, the course of
action deemed to provide the greatest value to the Company. Meanwhile the GMCO
business is advancing towards development of the oxidised gold portions of the
Jibal Qutman Gold and Hawiah Copper and Gold Projects, alongside an aggressive
exploration program over 14 recently granted exploration licences and a large
mineralised belt granted to GMCO's 50/50 Joint Venture with Australian major
Hancock Prospecting.

 

KEFI Founder and Executive Chairman, Harry Anagnostaras-Adams commented: "We
progress towards launch of Major Works at the Tulu Kapi Gold Project at what
is a very propitious moment in time. At a US$3,000 per oz gold price, net
operating cash flow after royalties and taxes for the first year of production
is estimated at c. US$304 million, of which US$240 million would repay all
Project debt.

 

"It is a great time to launch such a high-grade/high-recovery open pit gold
mine in rapidly growing Ethiopia, and we will now also push for this
development be followed quickly by the underground mine development at Tulu
Kapi. Likewise in Saudi Arabia, under the GMCO joint venture with KEFI's
partner leading Saudi conglomerate ARTAR, we will push the development in the
short term of the initial open pit gold mine projects at Jibal Qutman and
Hawiah.

 

"Thank you to shareholders and all other stakeholders for your continued
patience and support. It means a great deal to our hard-working teams on the
ground in Ethiopia and Saudi Arabia."

 

 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 (UK Lead Broker)           +44 (0) 20 7100 5100
 Oliver Stansfield, Jonathan Evans

 IFC Advisory Ltd (UK Financial PR)                  +44 (0) 20 3934 6630
 Tim Metcalfe, Florence Staton

 3PPB LLC (North American Financial PR)
 Patrick Chidley                                     +1 (917) 991 7701
 Paul Durham                                         +1-203-940-2538

 

Notes to Editor

 

KEFI Gold and Copper plc

 

KEFI is focused primarily on the development of the Tulu Kapi Gold Project in
Ethiopia and its pipeline of highly prospective exploration projects in the
Arabian-Nubian Shield. KEFI targets that production at Tulu Kapi will generate
cash flows for capital repayments, further exploration and dividends to
shareholders.

 

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