REG - Kefi Gold and Copper - Presentation in Addis Ababa, Riyadh and Dubai

KEFI Gold and CopperAnnouncement

05/04/2023 07:15

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RNS Number : 3952V  Kefi Gold and Copper PLC  05 April 2023

5 April 2023

KEFI Gold and Copper plc

("KEFI" or the "Company")

Presentation to Regional Investors in Addis Ababa, Riyadh and Dubai

KEFI Gold and Copper (AIM: KEFI), the gold and copper exploration and
development company with projects in the Federal Democratic Republic of
Ethiopia and the Kingdom of Saudi Arabia, is pleased to provide an updated
corporate presentation to be used in meetings with regional investors in Addis
Ababa, Riyadh and Dubai.  The presentation has been uploaded to the Company's
website: https://www.kefi-goldandcopper.com.

The presentation incorporates information on the maiden Al Godeyer resource
announced  on 3 April 2023, which has increased the metal content in the Open
Pit Scenario for the Hawiah project in Saudi Arabia by over US$200 million,
bringing the total Hawiah project metal content to c.US$4.8 billion and the
aggregate of KEFI's three advanced projects to c.US$9.6 billion, at current
metal prices (gold: 3.1Moz at US$1,980/oz, 266KT copper at US$8,888/T, 284KT
zinc at US$2,948/T and 9.7Moz silver at US$23/oz).  KEFI's aggregate
beneficial interest in this metal content is approximately 50% of the total or
US$4.8 billion.

The Ethiopian project, Tulu Kapi, has an in-situ metal content of US$3.4
billion and is development-ready. The two Saudi projects have combined in-situ
metal content of US$6.2 billion and are undergoing feasibility studies for
development.

The presentation also provides details of the c.US$390 million development
financing (including the mining fleet and all other capital requirements) for
the Tulu Kapi gold project in Ethiopia where last week the Tulu Kapi
syndicate's two development banks visited Addis Ababa for the second time in
the last month, to meet with the newly-appointed Ethiopian Minister of Mines,
H.E Habtamu Tegegn, with whom it was jointly undertaken to quickly resolve any
loose ends in respect of the final substantive conditions precedent ahead of
expected signing within the next month or so of the Final Umbrella Agreement.

As with the initial Umbrella Agreement signed in June 2022, the Final Umbrella
Agreement will set out all syndicate member roles and finance contributions
and conditions precedent to final formal approval being granted. However, the
Final Umbrella Agreement is also intended to confirm that project costs and
financial contributions will have been updated, along with technical and legal
due diligence having been updated, definitive agreements prepared and that the
key required government actions will have been agreed and being duly followed
through with. These regulatory aspects include matters far-reaching for the
minerals sector and not just for the Project, such as the in-country
protective rights of our development banks, project security, community
preparation, operation of project bank accounts in international financial
centres and various procedural matters which are standard for mining project
finance. Accordingly, it would then be possible to proceed to parties'
respective final approvals to execute and launch full project development.

Entering into the individual definitive agreements for all syndicate members
will be conditional on mutually interdependent formal shareholder and lender
approvals to be called in compliance with their respective notice provisions.
 As with any such international mining project finance transactions, these
approvals will require independent certification of security and community
readiness, placement of insurances, mortgage registration and similar standard
procedural conditions precedent and subsequent.  All parties are again
targeting full construction start to coincide with the next dry season
(October 2023), after having already prepared the community and procured the
plant and equipment, with full production targeted to start in 2025.

KEFI Executive Chairman, Harry Anagnostaras-Adams, commented:

"For fifteen years, KEFI Gold and Copper has been diligently building its
foundations in the two largest countries of this world class minerals region
known as the Arabian Nubian Shield.  We are proud to now have three advanced
projects coming on stream over the next few years with combined metal content
of nearly US$10 billion, approximately 50% of which is to KEFI's account.

"The Tulu Kapi gold project in Ethiopia will be the first to trigger its
start-up, preparing now for finance closing and launch.  We expect the
project finance syndicate to sign the Final Umbrella Agreement later this
month, reflecting the progress of intense preparations by each party including
far-reaching initiatives taken by the Government in respect of matters which
are critically important and most encouraging for the minerals sector and not
just our Project. We are extremely grateful for the Ethiopian Government's
vigorous support and collaboration.

"We have assembled a first-class regional platform across Saudi Arabia and
Ethiopia, with strong local partners and with leading regional development
banks and contractors for each country, between them providing over 95% of the
development capital for the three start-ups that we plan.

"KEFI is proud to be honouring its commitment to bring to its joint ventures
in Ethiopia and Saudi Arabia the human and financial resources required to
spur the development of their respective modern mining sectors.  In Ethiopia,
where we are about to start development, we are especially honoured to have
the strong backing of the local community.

"Under our social performance programmes at the Tulu Kapi gold project in
Ethiopia, we have already installed the local school, water supply and roads
in the project area.  This is just the beginning of what we plan to be a
long-term community development programme built around thousands of training
and employment opportunities, preferred local supply and related programmes
for sustainable long-term development in accordance with World Bank IFC
Performance Standards."

Enquiries

 KEFI Gold and Copper plc
 Harry Anagnostaras-Adams (Managing Director)                         +357 99457843
 John Leach (Finance Director)                                        +357 99208130
 SP Angel Corporate Finance LLP (Nominated Adviser and Joint Broker)  +44 (0) 20 3470 0470
 Jeff Keating, Adam Cowl
 Tavira Securities Limited (Joint Broker)                             +44 (0) 20 7100 5100
 Oliver Stansfield, Jonathan Evans
 WH Ireland Limited (Joint Broker)                                    +44 (0) 20 7220 1666
 Katy Mitchell, Andrew de Andrade
 IFC Advisory Ltd (Financial PR and IR)
 Tim Metcalfe, Florence Chandler                                      +44 (0) 20 3934 6630

 

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 and development
projects in the Kingdom of Saudi Arabia, also in the Arabian-Nubian Shield.
KEFI targets that Tulu Kapi Gold, along with its two most advanced Saudi
projects Jibal Qutman Gold and Hawiah Copper-Gold will come into production
over the period 2025-2027 and will generate cash flows for capital repayments,
further exploration and dividends to shareholders.

 

 

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