REG - Kefi Gold and Copper - Tulu Kapi Update

KEFI Gold and CopperAnnouncement

29/07/2024 07:00

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RNS Number : 1737Y  Kefi Gold and Copper PLC  29 July 2024

29 July 2024

KEFI Gold and Copper plc

("KEFI" or the "Company")

Tulu Kapi Update

KEFI (AIM: KEFI), the gold and copper exploration and development company
focused on the Arabian-Nubian Shield, with a pipeline of projects in the
Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, is
pleased to provide its latest update on the Company's Tulu Kapi Gold Project
("Tulu Kapi" or the "Project") in Ethiopia.

The Company is pleased to report that last week it received confirmation from
Project co-lender African Finance Corporation Limited ("AFC") of its
preliminary approval.  This follows further site visits during July by the
co-lenders' security consultants.  As previously reported, the other
co-lender, Eastern and Southern African Trade and Development Bank Ltd's
("TDB") has already granted final approval, which was also ratified by its
shareholder-board in February 2024. Final approvals from AFC are expected in
the next month or so, as the Project is ratified in line with the co-lender's
internal practices.

As recently reported, we continue to make progress with the Early Works
programme, which started in May 2024.  The Early Works are designed to enable
the Company to enter into binding definitive agreements with the funding
syndicate and drawdown first funds in October 2024, enabling the Major Works
to commence thereafter.

Last week, KEFI, the co-lenders and the local investors met with several
Ethiopian Federal Government Ministers and regional leaders.  At these
meetings all parties thanked the Ethiopian Government for its broad-ranging
support for Project launch at all levels, including enhanced security/safety
protection as a precautionary measure and wide-ranging regulatory reforms,
including formal acknowledgement of pre-development expenditures as an
important component of measuring and crediting foreign direct investment (for
tax deductions and capital-ratio compliance), relief from exchange control
restrictions (for servicing international finance and operating obligations)
and higher permissible debt-equity ratios for this capital-intensive industry.
 These measures have been applied formally for the whole mining industry and
not just for Tulu Kapi, because of the sector's strategic importance at
national, regional and local levels.  These initiatives are succeeding, and
several mining projects are now activating site preparations, alongside those
at Tulu Kapi, which now include initial field and community-focused works.

Harry Anagnostaras-Adams, Executive Chairman of KEFI, commented: "The
Government's push for the mining industry is beginning to see launch
activities on the ground.  At Tulu Kapi our initial activities are already
focused on engineering internationally and community consultations locally.
Physical activities at site will soon also become more obvious.

"Ethiopian gold projects that have recently started launch preparations are
likely to lift gold exports to US$1.3 billion per annum within three years,
overtaking coffee exports as Ethiopia's largest export sector.  The mining
sector growth initiatives can also be seen to be part of wide-ranging reforms
of the financial system and economy for Ethiopia to re-ignite its historic
high growth rates."

Enquiries

 KEFI Gold and Copper plc
 Harry Anagnostaras-Adams (Executive Chairman)       +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 Financial 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 (Institutional IR)
 Patrick Chidley                                     +1 (917) 991 7701
 Paul Durham                                         +1-203-940-2538

 

 

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