Kefi Gold and Copper PLC Tulu Kapi Update (8493O)
October 05 2023 - 6:39AM
UK Regulatory
TIDMKEFI
RNS Number : 8493O
Kefi Gold and Copper PLC
05 October 2023
5 October 2023
KEFI Gold and Copper plc
("KEFI", or the "Company", or the "Group")
Tulu Kapi Update
Ethiopian Central Bank Exemption from Exchange Controls
Received
Required Operational Details Received
Outstanding Regulatory Issues Resolved
KEFI Gold and Copper plc (AIM: KEFI), the gold exploration and
development company with projects in the Democratic Republic of
Ethiopia and the Kingdom of Saudi Arabia, is pleased to announce a
number of important developments in relation to the Company's Tulu
Kapi Gold Project ("Tulu Kapi" or the "Project").
KEFI is pleased to report the receipt of formal confirmation
from the National Bank of Ethiopia (the Ethiopian central bank) of
the details for the operation of offshore banking by the Company's
operating subsidiary Tulu Kapi Gold Mines Share Company ("TKGM")
and its project finance banks. This clarifies the operational
details for the implementation of the policies set out in the
recently published National Bank of Ethiopia Directives, waiving
strategic mining projects from foreign exchange control and capital
controls.
This is the last of many special permissions and policy changes
agreed with the Ethiopian authorities over the years since KEFI
assumed control of the Project, to allow modern project finance
arrangements to be applied given there has been no industrial-scale
mine development in Ethiopia for over 30 years. Tulu Kapi is now
finally fully-permitted with only procedural administrative
confirmations remaining.
With all matters of principle for the Project having now been
resolved with the authorities, the Project finance banks can now
proceed to final credit approval for the Project's US$190 million
secured debt package. Upon approval, the Project's detailed debt
terms will have been resolved, as will the structure of the overall
US$390 million finance plan (secured debt component of US$190
million, equity-risk-capital of US$130 million and contractor
supply of mining equipment of US$70 million).
This is considered the pivotal formal step for Project launch
and, upon receipt of final credit approvals , the procurement teams
and the social performance teams will be mobilised so that all
final details can be inserted into the detailed definitive
documents covering the Project, which can then be signed by all the
parties involved in the Project, which today would rank as the
largest single export-generator for Ethiopia given its estimated
annual revenues of c.US$250 million. The Company expects full
Project launch to commence in the current quarter as previously
advised.
In addition to the historical KEFI investment of c.US$90
million, and the planned secured debt and mining contractor
components, the US$130 million equity-risk component has been
allocated within the project finance syndicate and comprises
equity-risk notes to investors already active in Ethiopia and share
issues by TKGM and KEFI Minerals (Ethiopia) Limited to Federal and
Regional Government. Bank credit approval will allow formal Board
approvals to proceed for the equity component and, s ubject to
final confirmations, all Project funding will have been
secured.
Market Abuse Regulation (MAR) Disclosure
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
Enquiries
KEFI Gold and Copper plc
Harry Anagnostaras-Adams (Managing Director) +357 99457843
John Leach (Finance Director) +357 99208130
SP Angel Corporate Finance LLP (Nominated
Adviser) +44 (0) 20 3470 0470
Jeff Keating, Adam Cowl
Tavira Securities Limited (Lead Broker) +44 (0) 20 7100 5100
Oliver Stansfield, Jonathan Evans
IFC Advisory Ltd (Financial PR and IR) +44 (0) 20 3934 6630
Tim Metcalfe, Florence Chandler
3PPB LLC International (Non-UK IR)
Patrick Chidley +1 (917) 991 7701
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