KEFI Gold and Copper plc (LON:KEFI) is pleased to report that following permission from the security authorities site preparations for project launch have recommenced for the Tulu Kapi Gold Project, majority-owned via KEFI subsidiary Tulu Kapi Gold Mines Share Company. This includes district inspections by assessors for the financing syndicate and consultations with the community.
As a prelude to the next stage of community preparations, it is pleasing to report TKGM’s new binding agreement with the Ethiopian Evangelical Church of Mekane Yesus. EECMY will be one of KEFI’s long-term partners in TKGM and also will support our community projects. KEFI is greatly honoured to welcome EECMY and we look forward to collaborating with EECMY in overseeing the various community-based programmes in a manner which respects the local rules and regulations, the 21st century international standards for modern gold production such as World Bank IFC Performance Standards and also the highest moral codes of conduct. Whilst the EECMY investment into TKGM is not playing a major role in the total project finance package, EECMY’s role is significant for TKGM’s social licence. For instance, the Tulu Kapi community will potentially significantly benefit from EECMY’s micro-finance institution in Ethiopia.
We remain focused on starting mining and plant commissioning in late 2023. The Project launch schedule is expected to trigger certain community steps in December 2021, with full launch within the following months. In the meantime, as announced on 4 November 2021, the Ethiopian Ministry of Mines recently confirmed that the mining licence is in good standing to 2035 subject to KEFI’s confirmation of project finance procurement by 31 January 2022, which remains on track.
The Company is confident that the security situation at the Project has now been addressed and, whilst it has no direct impact on TKGM’s operations, remains optimistic that the current broader conflicts within the country will be resolved peacefully. To this end, we note that an African Union-appointed mediator has been accepted by both sides in the political and military national conflict and that he has begun to engage during the past week, notably with the support of the United Nations, European Union and other major world powers.
KEFI Gold and Copper will report further material developments and make further progress reports as appropriate.
