REG - Kefi Gold and Copper - Tulu Kapi Operational Update

KEFI Gold and CopperAnnouncement

20/08/2024 07:00

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RNS Number : 0108B  Kefi Gold and Copper PLC  20 August 2024

20 August 2024

KEFI Gold and Copper plc

("KEFI" or the "Company")

Tulu Kapi Operational Update

Significant Early Works progress ahead of financial close and full Project
launch

KEFI (AIM: KEFI), the gold and copper exploration and development company
focused on the Arabian-Nubian Shield since 2008, is pleased to provide this
operational update encompassing the activities of the Company, as well as
wholly owned KEFI Minerals (Ethiopia) Ltd ("KME") and its 95%-owned subsidiary
Tulu Kapi Gold Mines Share Company ("TKGM") in relation to the Company's Tulu
Kapi Gold Project ("Tulu Kapi" or the "Project").

Early Works at Tulu Kapi are ramping up, as follows:

·    Physical Activities:

o Commencement of building construction camps, which follows on from the
installation of security camps. Plus, the drilling of water wells, as well as
geotechnical drilling to confirm foundation design of certain planned
infrastructure

o Principal contractor updating final infrastructure budget with international
plant fabricators, to enable the execution of the fixed price construction
agreement next month

o Studies being undertaken to increase processing capacity by a minimum of 20%
as we now look to incorporate the addition of underground mine development,
having already set the open pit mining rate at above the nameplate capacity of
the process plant. Studies suggest this increased capacity can be achieved
within existing capex and opex forecasts

o The Government has surveyed new host lands and will update the survey of
existing properties of resettlers within the Tulu Kapi community, a precursor
for paying compensation and starting Major Works on the land

o The Tulu Kapi Charitable Foundation has distributed malaria medication in
the district and is expanding medical facilities

o The nearby company airstrip has been upgraded pending Major Works to build
the on-site air-strip

o Government security expanded around site and district. Private security
contractors appointed for on-site and for communications and logistics control

 

·    Financing Activities:

o Second site visit by secured lenders has been prepared so that the second
co-lender may proceed with its final credit approval during the next month,
following that of the first co-lender already received

o Conditions precedent list no longer contains matters for negotiation, but
has been reduced down to matters just requiring documentation finalisation and
formal execution

o Local investors in Equity Risk Notes requested to formally resolve their
level of participation by the end of August 2024 so that other regional
investors know what is available for finalisation by them in September

o Political Risk Insurance confirmed for non-Ethiopian investors in
preparation for finalising the equity investment syndicate structure in
September

Harry Anagnostaras-Adams, Executive Chairman of KEFI commented: "KEFI is
pressing ahead on the ground in Ethiopia as fast as permitted by land access.
The situation has turned decidedly pro-mining with site activities made
possible over the past two months with the deployment of large
safety-protection forces. During the same period, the proclamation of national
pro-development reforms is putting Ethiopia in the top 10 growth countries
globally where it had been for nearly 20 years until recently.

"In these same two months, reforms have included the floating of the currency,
the launching of the first IPO on the new Ethiopian Stock Exchange, the
opening of foreign investment into the local financial sector, international
creditor rescheduling and a major IMF financial support package.

"We are fortunate to have very supportive Government partners, financiers and
contractors, and it is fortuitous that major economic reforms are being
unveiled in Ethiopia as we launch our works. A nearby multi-million ounce gold
mine has also started its initial site works.

"At the current all-time high gold price of US$2,500 per ounce, the first full
year net cash flow from Tulu Kapi operations is estimated at US$196 million
(£154 million), which is estimated as being more than sufficient to then be
able to prepay all debt. This is based on the 'bankable plans for the open pit
with the plant to run at designed nameplate processing capacity."

Enquiries

 

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

 

 

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