TIDMKEFI
RNS Number : 3309D
KEFI Minerals plc
26 April 2017
26 April 2017
KEFI Minerals plc
("KEFI" or the "Company")
UPDATE ON TULU KAPI PROJECT AND SITE VISIT
KEFI and Government of Ethiopia Finalise Community Resettlement
Plan
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 announce
that
KEFI and the Government of Ethiopia have triggered the
resettlement arrangements for the Tulu Kapi community. Tasks
include property survey and data updates plus new lands site
preparations.
The objective for the Government of Ethiopia and KEFI is for
construction to commence in H2-17. Consultations are at the
relevant federal Government ministries, Oromia National Regional
State, West Wolega Zone and the Municipalities (Genji Woreda, Kapi
Guracho and Bikiltu Ankore).
The Company will be hosting site visits which will start today
and end on Friday 28 April 2016. Attendees include shareholders,
analysts, financier groups and government representatives, who will
receive presentations from the senior management team.
A copy of the summary presentation will be available for
download from KEFI's website: www.kefi-minerals.com. No new
material financial or trading information will be disclosed during
the event.
Commenting on the resettlement, KEFI's Executive Chairman, Mr
Harry Anagnostaras-Adams, said:
"KEFI and the government at all levels, have worked diligently
with the local community to ensure that they are supported and
compensated appropriately throughout the resettlement process.
"Tulu Kapi is an important project, not just for KEFI but for
the district, region and for Ethiopia as a whole. All stakeholders
recognise the value-added contribution this project is expected to
make, especially to the community and district, including training
and long term jobs for over 500 people, a significant local
economic multiplier effect and the generation of over US$1 billion
of hard currency exports from initial open pit operations
alone.
"With this vital step now taken, we look forward to progressing
with the final steps ahead before commencing construction."
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
Beaufort Securities Ltd (Joint
Broker) +44 20 3440 6817
Elliot Hance +44 20 7382 8300
Luther Pendragon Ltd (Financial
PR)
Harry Chathli, Claire Norbury,
Ana Ribeiro +44 20 7618 9100
Further information can be viewed on www.kefi-minerals.com
NOTES TO EDITOR
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 refining contractual terms for
project construction and operation. Latest estimates for annual
gold production are c. 100,000oz pa for a 10-year period and All-in
Sustaining Costs (including operating, sustaining capital and
closure but not including leasing and other financing charges) of
<US$800/oz. Tulu Kapi's Ore Reserve estimate totals 15.4Mt at
2.12g/t gold, containing 1.05Moz. The first eight production years
of the open pit are estimated to yield an average of 115,000oz
pa.
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$31 million to US$216 million within the 5 year gold price range
of US$1,050/oz to US$1,750/oz.
KEFI Minerals in the Kingdom of Saudi Arabia
In 2009, KEFI formed G&M in Saudi Arabia with local Saudi
partner, Abdul Rahman Saad AlRashid & 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 over 20 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.
This information is provided by RNS
The company news service from the London Stock Exchange
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