KEFI (AIM: KEFI), the gold and copper exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, has provided an update for the company’s Tulu Kapi Gold Mines Share Company (TKGM) joint venture project in Ethiopia.
Progress in Ethiopia over the past month has remained on track, with further advancement on the multi-party project financing activities and the early development works.
The company has kept the Ethiopian Ministry of Mines informed to ensure that the procedure is satisfactory to demonstrate good faith and progress that is as fast as reasonably possible. KEFI has maintained the full funding syndicate for the Tulu Kapi Gold Project and the plan is to:
- Sign the funding ‘Umbrella Agreement’ during June 2022 to demonstrate the full funding commitment, in particular to the Ministry
- Evidence the full funding capacity of each syndicate member to the Ministry
- Clearly set out any outstanding conditions for execution of the underlying definitive agreements between the respective individual counterparties to the Umbrella Agreement
- Trigger full Project construction in the Ethiopian dry season starting in October 2022
- Execute the underlying detailed funding agreements with each of the individual counterparties to the Umbrella Agreement upon demonstration of requisite progress as regards the satisfaction of the few remaining conditions precedent, which themselves are internationally standard for a transaction of this nature and include:
o security protection on transport routes as well as at the Project sites;
o insurance policies;
o registration of mortgages and direct agreements between the banks and Government; and
o the remaining few Government tasks, including confirming security arrangements and confirmations of various other Project matters and protections for the banks, such as registration of historical costs, exploration rights in the areas worked by KEFI and from within which the Tulu Kapi mine development was successfully planned, details of international bank accounts for clearing development and operational fund flows as approved by the central bank and confirmation the two lending banks have the same terms of engagement.
Project activities undertaken in the last month included:
- Receiving a final pricing proposal from the mining contractor, which is being reviewed;
- Commissioning further refinements of the process plant construction contract and pricing. Current supply chain strains internationally warrant intensified due diligence on this matter;
- Collaborating with the local Government authorities to implement the first stage of resettlement and compensation under the agreed protocols as per World Bank IFC Performance Standards;
- A multitude of community and local-authority engagement meetings.
“We continue to accelerate activities in preparation for signing the financing syndicate Umbrella Agreement this month, then signing individual definitive agreements over the following few months, enabling full Tulu Kapi construction to commence from the end of the wet season in October 2022,” Executive Chairman. Harry Anagnostaras-Adams, said.
“KEFI has significant momentum as we progress our three advanced projects in two countries that are now overtly pro-development. These three projects provide the opportunity for the company to establish itself as a production leader in the Arabian Nubian Shield, having already established itself as an exploration leader with a now-established Mineral Resources of c.4.7 million ounces gold- equivalent in Ethiopia and Saudi Arabia.”
For further information please visit: https://www.kefi-minerals.com/