KEFI Gold and Copper plc (LON:KEFI), the gold exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, has provided an operational update on the activities of KEFI Minerals (Ethiopia) Ltd and Tulu Kapi Gold Mines Share Company in Ethiopia, and Gold & Minerals Ltd in Saudi Arabia.
An Investor Webinar will be held on Wednesday 24 August 2022 at 12.00 midday London time (see details below). A presentation will be uploaded to the website on Monday 22 August 2022, which will be presented at the webinar by senior operational executives.
Highlights
During July and August 2022, continued regulatory progress has enabled KEFI with its preparations for project financings and development of its portfolio of assets in Ethiopia and Saudi Arabia. Notable developments are summarised below.
Ethiopia:
· In July 2022 the Ministry of Mines endorsed historical investment of c. US$80 million to 31 December 2020 to enable the registration of KEFI’s past equity investments and confirm the TKGM capital structure for our co-investors into TKGM;
· In August 2022 the Ethiopian Prime Ministry endorsed that both proposed TKGM project finance banks, being East Africa Trade and Development Bank (“TDB”) and Africa Finance Corporation (“AFC”), are permitted to proceed with the proposed combined c. US$200M funding package with the same rights and protections;
· Independent reports and advice were received from SLR Consulting and Constellis, in relation to social licence and security respectively, in August 2022. These reports were compiled after consulting the relevant Ethiopian authorities and were supportive of TKGM’s proposed community and security plans for the Project launch;
· Throughout the period, KEFI continued detailed reporting to the Ministry of Mines, with whom we reaffirmed plans for Project launch in October 2022.
Saudi Arabia
· The Ministry of Industry and Mines confirmed in August 2022 that the Jibal Qutman Gold Project should be fast-tracked to development, having cleared the blockages which hindered progress since a mining licence application was submitted in 2015. First gold production from Jibal Qutman is targeted for 2024, around the same time as applies to Tulu Kapi in Ethiopia;
· An additional exploration licence was granted within the Wadi Bidah Mineralisation Belt (“WBMB”) at Abu Salal South in August 2022, reinforcing the growth potential of our large Hawiah Copper-Gold discovery and the adjacent Al Godeyer prospects.
· Jabal Hillit and Qunnah “Al Qassim” exploration licences were awarded in July 2022, situated approximately 30km apart, and straddling the prospective Ad Dawadimi and Afif terranes in the eastern portion of the Arabian Shield in Saudi Arabia;
· In August 2022, the Jadib Al Qahtanah exploration licence was awarded, 45km east of the Nahad Ad Dahab mine, the principal historic Saudi gold and silver mine;
· So far during 2022 we have had more licences granted than in the previous 14 years in Saudi Arabia, testament to the regulatory overhaul in the country as well as our leading position in the sector. Please see RNS of 12 July 2022 and 3 August 2022 for further details, including some impressive field sampling results.
KEFI Group
· KEFI has been rapidly expanding its resource base for two years and regulatory progress during July and August reinforces that momentum. KEFI’s beneficial interest in gold-equivalent mineral resources has grown from 1.2 million ounces in mid-2020 to 2.1 million ounces at the end of 2021, with further growth underway in 2022 and anticipated in the coming years;
· Having three advanced projects in two countries has now placed the Company in a stronger diversified position, with all three also receiving higher regulatory support;
· In April 2022 KEFI also significantly de-risked the parent company balance sheet by raising £8 million of equity to repay liabilities and reinforce project momentum. The Company today has cash at bank and working capital facilities to execute on its development plans as outlined.
· The corporate equity issues over the past year have also seen a number of institutional investors join the register;
· The overall finance plan remains in accordance with previous guidance (see Finance Director Report of 2021 Annual Report) with all three projects involving project finance syndication, mostly at project level.
