REG - Kefi Gold and Copper - Updates Presented to Mines and Money Conference

KEFI Gold and CopperAnnouncement

01/12/2021 07:00

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RNS Number : 1094U  Kefi Gold and Copper PLC  01 December 2021

1 December 2021

KEFI Gold and Copper plc

("KEFI" or the "Company")

KEFI Updates Presented to Mines and Money Conference in London

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 presenting at the Mines and Money Conference being held in
London on Wednesday 1 and Thursday 2 December 2021.

The presentation being given will shortly be available on the Company's
website at https://www.kefi-minerals.com (https://www.kefi-minerals.com) and
includes reference, inter alia, to the following matters:

 ·         Increase in asset values
 o                        The value of the Company's projects have, by the Company's estimates (using
                          NPV analysis), more than doubled over the past year and are expected to
                          increase further due to targeted expansion of resources and reserves over the
                          coming year.  The next update and upgrade to a Mineral Resource Estimate is
                          scheduled for December 2021 in respect of the Hawiah Copper-Gold Project in
                          Saudi Arabia.  Looking beyond the short term, the Company has a large project
                          pipeline to foster further growth following the planned triggering of its
                          first developments in Ethiopia and Saudi Arabia in 2022 and 2023.

 

 ·         The Ethiopian political situation and the limited impact the civil war in
           Ethiopia has had on KEFI.
 o                                                The conflicts in the Ethiopian civil war have all been well away (c 1000km)
                                                  from the Tulu Kapi Project site.  After the Ethiopian Government unilaterally
                                                  declared a ceasefire on 28 June 2021, rebel forces proceeded to occupy large
                                                  parts of the neighbouring states of Afar and Amhara (adjacent to the State of
                                                  Tigray where the rebels originate) in July-September 2021. The rebels have not
                                                  entered the State of Oromia where the Tulu Kapi Gold Project and Ethiopia's
                                                  capital city Addis Ababa are located.
 o                                                After the Ethiopian Government was re-elected in October 2021, it launched
                                                  major military offensives which in recent days has led to the rebel militias
                                                  retreating from Afar as government forces continue to advance on the rebel
                                                  militia positions in Amhara.  In addition, independent mediation efforts have
                                                  gathered pace backed by the African Union and United Nations amongst others.

 

 ·         The COVID pandemic and its limited impact on Company activities.
 o                                            The Company complies with strict COVID-management procedures and, as a result,
                                              the pandemic has had limited impact on its operations.
 o                                            The pandemic's low impact in Ethiopia and Saudi Arabia is summarised in the
                                              following statistical comparison from Worldometer (as at 29 November 2021):

 

               Cases       Deaths   Population (million)  Cases per million  Deaths per million
 UK            10,189,059  144,810  68.4                  148,987            2,117
 Ethiopia      371,346     6,750    119.0                 3,121              57
 Saudi Arabia  549,720     8,834    35.6                  15,451             248
 Cyprus        133,860     594      1.2                   109,744            487

 

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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