JOHANNESBURG (miningweekly.com) – The shareholders of East African gold exploration and development company Nyota Minerals on Wednesday approved the sale of the company’s 25% stake in the Tulu Kapi gold project, in Ethiopia, to gold and copper exploration and development company Kefi Minerals, for £1.5-million.
The purchase consideration would be made up of £750 000 in cash and 50-million new ordinary shares in Kefi.
"We are pleased to have taken full control over the Tulu Kapi project and funding flexibility. This was important to us as our work, since the acquisition of our controlling 75% interest, indicated that the project will be bigger and last longer than had initially been assumed,” Kefi MD Jeff Rayner commented.
Kefi further noted that Nyota’s shareholders had also approved the in-specie distribution of all the Kefi shares held by Nyota to its shareholders.
“Following the distribution, Kefi will have new shareholders who, between them, will hold about 15% of Kefi's issued share capital,” the company noted.
Kefi said the acquisition and distribution would simplify the corporate and project structure of Tulu Kapi in preparation for project financing and development, which was expected to start in 2015.
Nyota, meanwhile, said the £750 000 cash consideration received would be used to provide the company with initial general working capital and funding for the potential alluvial mining and ongoing exploration of its northern block licences in Ethiopia.