KEFI Minerals (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, is pleased to advise that, further to the announcement made on 17 December 2019, in relation to the Company’s Tulu Kapi Gold Project (the “Project”).
The subscription agreement into the Project company, Tulu Kapi Gold Mines Share Company (“TKGM”) was duly executed by ANS Mining Share Company (“ANS Mining”) on Sunday 5 January 2019 after it had completed its own internal processes in accordance with local procedures. The existing TKGM shareholders, KEFI and the Ethiopian Government, have also approved the issue of TKGM shares to ANS Mining.
KEFI greatly appreciates the confidence and commitment demonstrated by ANS Mining, its board of Ethiopian business leaders and its underlying shareholders, which comprise a broad syndicate of strong organisations in the local banking, insurance and investment sectors. Combined with the commitments of the community and Government at all levels, this is truly an inclusive and broad-based public-private partnership with majority Ethiopian ownership. This is already proving invaluable in traversing the political and security landscape of such a high-growth and fast-changing country.
KEFI has committed to installing into TKGM all the systems and expertise required to develop and operate this first modern mine development in Ethiopia to the highest international standards environmentally, socially and in all other respects. We will maximise local participation in all aspects of the Project and have already built a school, provided local water supply and launched a project to initiate industry-wide training in parallel with the Project start-up.
The terms of the Project equity subscription remain as previously stated and summarised in the Company’s announcement on 25 November 2019. The existing TKGM shareholders have been very supportive of the Project and now TKGM will be further empowered by the transfer of the first tranche of the ANS Mining funding of US$9.5 million (Ethiopian Birr equivalent) to TKGM during January 2020, following the completion of certain procedural matters.
Harry Anagnostaras-Adams, Executive Chairman of KEFI commented:
“I am delighted to confirm the signed subscriptions of ANS Mining into the Project company. Whilst we have been working closely with ANS Mining for some time and developed an excellent relationship, I am now pleased to be able to welcome them formally as partners.
“Following first funds flow this month we will commence phase one of the community resettlement, trigger debt implementation and detail the final procurement and contractual arrangements with the principal Project contractors.
“These are exciting times and I look forward to updating shareholders over the coming weeks and months as we move forward with the development of Tulu Kapi.”
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 (“MAR”) until the release of this announcement.
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