Aim-listed Kefi Minerals on Friday confirmed that ANS Mining Share Company had signed a binding project equity investment agreement for its subscription of new equity capital into Tulu Kapi Gold Mines (TKGM) for a minimum of $30-million, which would earn it a stake of 23% in TKGM.
The agreement also gives ANS the flexibility to invest further funds – up to $83-million – to increase its interest to 29%, with the proviso that its shareholding, when aggregated with that of the Ethiopian government, does not exceed 49.9% of TKGM, thus ensuring Kefi’s majority shareholding in TKGM.
Kefi stated that the agreement is a material milestone in the ultimate development of the Tulu Kapi gold project, in Ethiopia.
"We have successfully assembled all the equity development capital at the project level, based on significant local financial institutional support for project equity investment.
"Kefi’s majority interest in the project gives the company an implied valuation of $66-million based on these transaction metrics, while not including any value for the Tulu Kapi underground deposit or the exploration prospects in Ethiopia and Saudi Arabia, the largest countries within the highly prospective Arabian Nubian Shield where Kefi is focused,” said Kefi FD John Leach.