REG - Kefi Gold and Copper - Significant Progress on Tulu Kapi Finance Package

KEFI Gold and CopperAnnouncement

10/01/2024 07:00

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RNS Number : 1657Z  Kefi Gold and Copper PLC  10 January 2024

10 January 2024

KEFI Gold and Copper plc

("KEFI" or the "Company")

Significant Progress on Tulu Kapi Gold Project US$320 million Finance Package

KEFI Gold and Copper PLC (AIM: KEFI), an early mover and successful explorer
in the highly prospective Arabian Nubian Shield, is pleased to announce that
it has received confirmation of conditional final credit committee approval
from the lead lender for its "shovel-ready" Ethiopian development project, the
high-grade Tulu Kapi Gold Project (the "Project").  This followed the
analogous approvals from other key syndicate members including lead
contractors and lead equity parties, and the previously reported actions by
the Government of Ethiopia ("Government") during 2023.  Key Government
actions include the previously negotiated and reported exemptions from foreign
exchange restrictions, commitments to provide permanent security protection
and the approval of additional protections for the lenders for the Project.

 

The receipt of these conditional approvals is testament to the collaborative
and long-standing supportive attitude of Project syndicate parties.  The
entire US$320 million finance package is designed at the subsidiary level,
with syndicate members who know the country and are keen to support in our
tightly coordinated and safe manner.

 

KEFI is now mobilising into the field to prepare the community, so far having
briefed church leaders and congregations, and distributed medical treatment
for the victims of the recent malaria outbreak, via the Tulu Kapi Charitable
Endowment.  For good order, the introductory presentation made available to
the community has been uploaded to the KEFI website and is accessible via the
following link:
https://www.kefi-goldandcopper.com/expo-presentation/addis-adaba
(https://www.kefi-goldandcopper.com/expo-presentation/addis-adaba)

 

In parallel with the social engagement programme, we are preparing detailed
definitive documentation for signing between the Project syndicate financiers.
 Full Project launch, including funding drawdown, is on course for H1 2024,
subject to the satisfaction of all the standard conditions precedent for a
transaction of this type, independent confirmation that the Project is ready
for launch from security and community standpoints, and final board approvals
of all parties.

 

Speaking from the Future Minerals Forum in Saudi Arabia, where KEFI has been
the technical partner in the highly successful Gold and Minerals SLA since
2008, Harry Anagnostaras-Adams, Executive Chairman of KEFI Gold and Copper,
commented:

 

"The Ethiopian Government and the lead syndicate members of our high-grade
Tulu Kapi Gold Project have been working hard to support our Project launch.
The Government has recently made strong commitments including approving
country membership (a set of protections for development finance institutions)
for both of our Project lenders, deregulation of exchange controls and
commitment to the preparation of security and our community.  These
Government initiatives have played a very important supportive role in
allowing the Project to move forward.

 

"By the end of 2023, we had updated all independent technical due diligence
and reaffirmed conditional approvals by all lead members of the Project
syndicate, including conditional final credit committee approval of the lead
lender.  This has now given us the confidence to trigger preparations for
Project launch, including progressing the approvals by the other syndicate
members, preparing security and community, the readiness of which will be
independently assessed, finalising legal documentation and the final board
approvals for financial closing by all syndicate members.

 

"The targeted value-add from Project implementation is many times today's KEFI
share price, as illustrated from the various industry-standard valuation
benchmarks historically reported in our corporate presentations.  KEFI
believes these are realistic targets as we successfully implement KEFI's
strictly risk-managed development plans, whilst also addressing our highly
prospective exploration pipeline in both Ethiopia and Saudi Arabia."

 

Market Abuse Regulation (MAR) Disclosure

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

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)  +44 (0) 20 3470 0470
 Jeff Keating, Adam Cowl

 Tavira Securities 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 International (Institutional IR)
 Patrick Chidley                                     +1 (917) 991 7701
 Paul Durham                                         +1 (203) 940 2538

 

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