Kefi Gold signs off umbrella agreement for Tulu Kapi development
"We push for construction in Q4 2023 following procurement and community preparations.”
Company
LON:KEFI
KEFI Gold and Copper PLC is an exploration and development company focused on gold and copper deposits in the highly prospective Arabian-Nubian Shield. The company is focused primarily on developing the advanced Tulu Kapi Gold Project in Ethiopia. KEFI has also been successful in Saudi Arabia where it has discovered and delineated gold resources at the Jibal Qutman Gold Project and copper-gold-zinc-silver resources at the Hawiah Copper-Zinc Project.
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"We push for construction in Q4 2023 following procurement and community preparations.”
KEFI has an attractive portfolio of gold projects in Ethiopia and Saudi Arabia
Its shares were changing hands 2.1% higher at 0.59p following the news
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KEFI also owns a major gold development project in Ethiopia
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As it awaits regulatory permission in Ethiopia, the exploration focus has been switched to Saudi Arabia
“The Tulu Kapi Gold Project will be a first for many decades in Ethiopia," KEFI executive chair Harry Anagnostaras-Adams said
A Definitive Feasibility Study (DFS) for development at the Jibal Qutman Gold Project will commence soon
KEFI said it views the development as "positive for the country and as well as for the Company's Tulu Kapi Gold Project, which is currently clearing the last regulatory processes required ahead of the expected signing of binding project fin
The group is active in both Ethiopia and Saudi Arabia
"We can now realistically target bringing the mine into production in H2-2024," said executive chairman Harry Anagnostaras-Adams
Tulu Kapi is set to be the first industrial scale mine development in Ethiopia for more than 30 years
KEFI has an extensive portfolio of assets in Saudi Arabia and Ethiopia
Target launch for the project is the start of the Ethiopian dry season in October 2022
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The company remained confident that it has complied with all regulatory requirements
Drill rigs are turning at the Hawiah and Al Godeyer projects.
"We continue to accelerate activities in preparation for signing the financing syndicate Umbrella Agreement this month,” said executive chairman Harry Anagnostaras-Adams
KEFI has advanced projects in Ethiopia and Saudi Arabia
"We continue to step up activities for signing the financing syndicate umbrella agreement next month, enabling full construction to commence from October,” said KEFI chairman Harry Anagnostaras-Adams
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The money raised will bolster security arrangements at Tulu Kapi ahead of the start of construction
Tulu Kapi in Ethiopia is the most advanced project, while Jibal Qutman and Hawiah are in Saudi Arabia
Efforts are now focused on delivering an initial JORC Mineral Resource during 2022
Patience, and a deep experience of the ups and downs of mining exploration, have stood KEFI in good stead
The security situation has remained stable at both the site and the preferred transport routes over the past two months, it said
Development of the projects are expected to be partly funded by shareholders (25%) with the rest coming from project debt-funding
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It comes as KEFI and its partners work to advance the Tulu Kapi project
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The move will allow construction to get underway early next year
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The agreement allows the syndicate to invest US$30-35mln in Arabian Nubian Shield Resources Limited, an investment vehicle currently being incorporated
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Anagnostaras-Adams has chaired the gold exploration and development business since 2014
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Broadly speaking, the new consortium is coming in on the same terms as the Ethiopian government
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The project is now only awaiting final governmental approvals before it can go into development