TIDMKEFI
RNS Number : 1347P
KEFI Minerals plc
29 August 2017
29 August 2017
KEFI Minerals plc
("KEFI" or the "Company")
Tulu Kapi Update
KEFI Minerals (AIM: KEFI), the gold exploration and development
company with projects in the Kingdom of Saudi Arabia and the
Federal Democratic Republic of Ethiopia, is pleased to provide an
update on the Company's Tulu Kapi gold project in Ethiopia (the
"Project").
-- All VAT refunds have now been received in full (equivalent of c. GBP2.5 million)
-- KEFI and Oryx Management Limited ("Oryx"), the mandated
project financier for the Project, have agreed the finance
execution plan and assembling documentation across all the fronts
for finance closing later in 2017.
-- Approved that selected preliminary field works start as soon
as the wet season ends in September 2017, such as geotechnical
drilling of the planned sites for the plant and dams, to keep to
fastest Project works schedule for production commencing late
2019.
-- KEFI (via its wholly-owned subsidiary KEFI Minerals
(Ethiopia) Limited ("KME") and the Federal Government of the
Federal Democratic Republic of Ethiopia ("Government") have
launched the new company to hold the Project, Tulu Kapi Gold Mines
Share Company Limited ("TKGM").
o Based on current estimates of capital spending and capital
contributions, respective shareholdings will be 75-80% KEFI and
20-25% Government.
o The Board of TKGM includes two representatives from the
Government and four from KEFI. Of the KEFI appointees Harry
Anagnostaras-Adams (KEFI Executive Chairman) has been appointed
Chairman and Wayne Nicoletto (KEFI Chief Operating Officer) has
been appointed Managing Director.
-- TKGM is now implementing the agreed project plan, including:
o Transferring the Project mining licence (the minerals rights
and the overarching permit to develop and operate) from KME to
TKGM.
o Ancillary consents from local and regional authorities for the
detailed Project construction activities such as road widening,
power connections and waste management.
o Resolving with local authorities as regards infrastructure for
the resettlement sites.
o Calculating the final compensation payable for displaced
landholders in light of the now completed updates of property
surveys and the collected independent data for landholders' product
yield and market prices.
Commenting KEFI's Executive Chairman, Harry Anagnostaras-Adams,
said:
"We are very pleased with the progress being made at Tulu Kapi.
We have agreed with our partners both the execution plan to close
the required financing and the Project works schedule.
"The launch of project company TKGM has cemented our
relationship with the Government and everyone is pushing to
complete the financing and get into development and production. We
look forward to providing further updates as matters progress in
the coming weeks and months."
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
ENQUIRIES
KEFI Minerals plc
Harry Anagnostaras-Adams (Executive
Chairman) +357 99457843
John Leach (Finance Director) +357 99208130
SP Angel Corporate Finance
LLP (Nominated Adviser)
Ewan Leggat, Jeff Keating +44 20 3470 0470
Brandon Hill Capital Ltd (Joint
Broker)
Oliver Stansfield, Alex Walker,
Jonathan Evans +44 20 7936 5200
RFC Ambrian Ltd (Joint Broker)
Jonathan Williams +44 20 3440 6817
Beaufort Securities Ltd (Joint
Broker)
Elliot Hance +44 20 7382 8300
IFC Advisory Ltd (Financial
PR and IR)
Tim Metcalfe, Heather Armstrong +44 20 3053 8671
NOTES TO EDITORS
KEFI Minerals plc
KEFI is the operator of two advanced gold development projects
within the highly prospective Arabian-Nubian Shield, with an
attributable 1.93Moz (100% of Tulu Kapi's 1.72Moz and 40% of Jibal
Qutman's 0.73Moz) gold Mineral Resources (JORC 2012) plus
significant resource growth potential. KEFI targets that production
at these projects generates cash flows for further exploration and
expansion as warranted, recoupment of development costs and, when
appropriate, dividends to shareholders.
KEFI Minerals in Ethiopia
The Tulu Kapi gold project in western Ethiopia is being
progressed towards development, following a grant of a Mining
Licence in April 2015.
Following completion of KEFI's Definitive Feasibility Study for
Tulu Kapi, the Company is now progressing contractual terms for
project construction and operation. Latest estimates for annual
gold production are c. 120,000oz pa and All-in Sustaining Costs
(including operating, sustaining capital and closure but not
including financing charges) of <US$800/oz. Tulu Kapi's Ore
Reserve estimate totals 15.4Mt at 2.12g/t gold, containing
1.05Moz.
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. These plans now also
reflect the agreed construction and operating terms with project
contractors, and have been independently reviewed by experts
appointed for the project finance syndicate.
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.
The projected cash flows indicate that the net cash build-up
(after servicing financing) in the first three production years is
US$61 million to US$251 million for the gold price range of
US$1,100/oz to US$1,900/oz which prevailed during the past seven
years.
KEFI Minerals in the Kingdom of Saudi Arabia
In 2009, KEFI formed G&M in Saudi Arabia with local Saudi
partner, Abdul Rahman Saad Al-Rashid & Sons Company Limited
("ARTAR"), to explore for gold and associated metals in the
Arabian-Nubian Shield. KEFI has a 40% interest in G&M and is
the operating partner. To date, G&M has conducted preliminary
regional reconnaissance and has had five exploration licences
("ELs") granted, including Jibal Qutman and the more recently
granted Hawiah EL that contains over 6km strike length of
outcropping gossans developed on altered and mineralised rocks with
all the hallmarks of a copper-gold-zinc VHMS deposit.
At Jibal Qutman, G&M's flagship project, Mineral Resources
are estimated to total 28.4Mt at 0.80g/t gold for 733,045 contained
ounces. The shallow oxide portion of this resource is being
evaluated as a low capital expenditure heap-leach mine
development.
ARTAR, on behalf of G&M, holds a large portfolio of EL
applications. 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
instituted, and is further overhauling, policies to encourage
minerals 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.
Further information on KEFI can be found at
www.kefi-minerals.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCSEUSIUFWSEEA
(END) Dow Jones Newswires
August 29, 2017 02:01 ET (06:01 GMT)
Kefi Gold And Copper (LSE:KEFI)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Kefi Gold And Copper (LSE:KEFI)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024