REG - Kefi Gold and Copper - Positive Turning Point in Ethiopian Conflict

KEFI Gold and CopperAnnouncement

06/12/2021 07:00

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RNS Number : 6461U  Kefi Gold and Copper PLC  06 December 2021

6 December 2021

KEFI Gold and Copper plc

("KEFI" or the "Company")

Significant Positive Turning Point in Ethiopian Conflict

KEFI Gold and Copper (AIM: KEFI), the gold exploration and development company
with projects in the Federal Democratic Republic of Ethiopia and the Kingdom
of Saudi Arabia, is pleased to provide this positive update about the security
situation in Ethiopia.

As previously reported, following the taking of office in October 2021, the
democratically elected Ethiopian Government launched major military offensives
in late November 2021 to drive rebel militias out of the neighbouring states
they had recently occupied. Over the past few days, both sides in the conflict
have reported that the rebel militias are withdrawing. The Government has
publicly appealed to the local communities to treat the retreating rebels with
dignity.

KEFI sees this as a very positive development, so soon after the Ethiopian
Government's re-appointment in October 2021, following the highly significant
June 2021 elections. This turning point in the military conflict reinforces
KEFI's optimism that peace will soon be restored in Ethiopia and, to this end,
we also note that diplomatic efforts have recently been intensified, with
mediation now backed by the African Union, United Nations and major world
powers.

KEFI's project teams have remained on the ground throughout this period of
broader national conflict, preparing for the launch of the Company's Tulu Kapi
Gold Project (the "Project") in an appropriate safety-minded manner. At the
same time, Project syndicate members have reaffirmed their intended Project
participation as soon as compliance is demonstrated with normal conditions
precedent, including the community and security aspects of World Bank IFC
Performance Standards - also a condition of the mining licence.

Developments on the ground in recent days have largely driven the area of
major conflict back to its origin in Tigray and helps to establish a promising
scene for the hoped-for de-escalation, ceasefire and peaceful resolution for
all Ethiopians. In KEFI's view, there is little doubt that Ethiopia will then
rapidly regain its long-standing position amongst the world's top 10 growth
countries and that the minerals sector will play an important role with the
Company's Tulu Kapi Gold Project as one of the first movers.

Executive Chairman of KEFI, Harry Anagnostaras-Adams, commented: "We are
especially happy for our host country Ethiopia and its overwhelmingly
peace-loving citizens.

"We deeply thank our personnel, our community and other stakeholders for
working so tirelessly during the challenging times of 2021 in Ethiopia which
now show real promise of being put behind us. It is also wonderful to hear
that many of the Company's Ethiopian friends and associates living in other
countries are planning to spend Christmas in Ethiopia celebrating with their
extended families the expected imminent resolution of the internal conflicts.

"In addition to our operations in Ethiopia, our team on the ground in Saudi
Arabia has made significant progress in adding value to the Company's assets
this year, completing approximately 30,000 metres of drilling, along with a
range of tasks within the Preliminary Feasibility Study. An updated Mineral
Resource Estimate for our Hawiah Copper-Gold Project remains on track to be
reported later this month."

 

Enquiries

 KEFI Gold and Copper plc
 Harry Anagnostaras-Adams (Executive Chairman)                         +357 994 57843
 John Leach (Finance Director)                                         +357 992 08130

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

 Brandon Hill Capital Ltd (Joint Broker)                               +44 (0) 20 7936 5200
 Oliver Stansfield, Jonathan Evans

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

Further information can be viewed at www.kefi-minerals.com
(http://www.kefi-minerals.com)

 

Notes to Editor

KEFI Gold and Copper plc

KEFI is focused primarily on the advanced Tulu Kapi Gold Project development
project in Ethiopia, along with its pipeline of other projects within the
highly prospective Arabian-Nubian Shield. KEFI targets that production at Tulu
Kapi generates cash flows for capital repayments, further exploration and
expansion as warranted and, when appropriate, dividends to shareholders.

KEFI in Ethiopia

Ethiopia has for some years been undergoing a remarkable transformation both
politically and economically. However 2021 has been a turbulent year for the
country due to internal conflict due to military challenges to the Federal
Government from rebel minorities.

The Tulu Kapi gold project in western Ethiopia has however continued
progressing towards development, following a grant of a Mining Licence in
April 2015.

The Company has refined contractual terms for project construction and
operation, together with having assembled the full funding consortium and set
the conditional terms for the development funding package of c.US$356 million,
to be triggered as soon as normal conditions are satisfied including security.

Estimates include gold production of c.190,000oz pa. All-in Sustaining Costs
(including operating, sustaining capital and closure but not including leasing
and other financing charges) remain US$800-900/oz, depending on the gold price
impact on the royalty payable. Tulu Kapi's Ore Reserve estimate totals 15.4Mt
at 2.1g/t gold, containing 1.1Moz.

All aspects of the Tulu Kapi (open pit) gold project have been reported in
compliance with the JORC Code (2012) and subjected to reviews by appropriate
independent experts.

A Preliminary Economic Assessment has been published that indicates the
economic attractiveness of mining the underground deposit adjacent to the Tulu
Kapi open pit, after the start-up of the open pit and after positive cash
flows have begun to repay project debts. An area of over 1,000 square
kilometres adjacent to Tulu Kapi has been reserved for exploration by KEFI
upon commencement of development, with a view to adding satellite deposits to
development and production plans.

KEFI in the Kingdom of Saudi Arabia

In 2009, KEFI formed Gold & Minerals Limited ("G&M") in Saudi Arabia
with local Saudi partner, ARTAR, to explore for gold and associated metals in
the Arabian-Nubian Shield. KEFI has a c.31.5% interest in G&M and is the
operating partner.

ARTAR, on behalf of G&M, holds over 16 Exploration Licence (ELA)
applications pending the introduction of the new Mining Law. ELs are renewable
for up to three years and bestow the exclusive right to explore and to obtain
a 30-year exploitation (mining) lease within the area.

The Kingdom of Saudi Arabia has announced policies to encourage mineral
exploration and development, and KEFI Minerals supports this priority by
serving as the technical partner within G&M. ARTAR also serves this
government policy as the major partner in G&M, which is one of the early
movers in the modern resurgence of the Kingdom's minerals sector.

 

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