REG - Kefi Gold and Copper - Tulu Kapi Update

KEFI Gold and CopperAnnouncement

05/10/2023 11:45

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RNS Number : 8493O  Kefi Gold and Copper PLC  05 October 2023

 

5 October 2023

KEFI Gold and Copper plc

("KEFI", or the "Company", or the "Group")

Tulu Kapi Update

Ethiopian Central Bank Exemption from Exchange Controls Received

Required Operational Details Received

Outstanding Regulatory Issues Resolved

KEFI Gold and Copper plc (AIM: KEFI), the gold exploration and development
company with projects in the Democratic Republic of Ethiopia and the Kingdom
of Saudi Arabia, is pleased to announce a number of important developments in
relation to the Company's Tulu Kapi Gold Project ("Tulu Kapi" or the
"Project").

KEFI is pleased to report the receipt of formal confirmation from the National
Bank of Ethiopia (the Ethiopian central bank) of the details for the operation
of offshore banking by the Company's operating subsidiary Tulu Kapi Gold Mines
Share Company ("TKGM") and its project finance banks.  This clarifies the
operational details for the implementation of the policies set out in the
recently published National Bank of Ethiopia Directives, waiving strategic
mining projects from foreign exchange control and capital controls.

This is the last of many special permissions and policy changes agreed with
the Ethiopian authorities over the years since KEFI assumed control of the
Project, to allow modern project finance arrangements to be applied given
there has been no industrial-scale mine development in Ethiopia for over 30
years.  Tulu Kapi is now finally fully-permitted with only procedural
administrative confirmations remaining.

With all matters of principle for the Project having now been resolved with
the authorities, the Project finance banks can now proceed to final credit
approval for the Project's US$190 million secured debt package. Upon approval,
the Project's detailed debt terms will have been resolved, as will the
structure of the overall US$390 million finance plan (secured debt component
of US$190 million, equity-risk-capital of US$130 million and contractor supply
of mining equipment of US$70 million).

This is considered the pivotal formal step for Project launch and, upon
receipt of final credit approvals, the procurement teams and the social
performance teams will be mobilised so that all final details can be inserted
into the detailed definitive documents covering the Project, which can then be
signed by all the parties involved in the Project, which today would rank as
the largest single export-generator for Ethiopia given its estimated annual
revenues of c.US$250 million. The Company expects full Project launch to
commence in the current quarter as previously advised.

In addition to the historical KEFI investment of c.US$90 million, and the
planned secured debt and mining contractor components, the US$130 million
equity-risk component has been allocated within the project finance syndicate
and comprises equity-risk notes to investors already active in Ethiopia and
share issues by TKGM and KEFI Minerals (Ethiopia) Limited to Federal and
Regional Government. Bank credit approval will allow formal Board approvals to
proceed for the equity component and, subject to final confirmations, all
Project funding will have been secured.

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 (Non-UK IR)
 Patrick Chidley                                     +1 (917) 991 7701

 

 

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