Aim-listed Kefi Minerals has signed a shareholder agreement with the government of Ethiopia for the incorporation, ownership and operation of Tulu Kapi Gold Mines (TKM).
The agreement will result in TKM owning 100% of the Tulu Kapi project.
The agreement sets out the parties’ respective commitments to invest equity capital in TKM and the mechanisms for control of the development and operation of the Tulu Kapi project.
Kefi will own 75% of TKM and government the balance.
“Today’s step represents an important initial formality within the timetable allowing the company to start development activities in the second half of the year. This will follow financing and community resettlement, both of which the company is actively implementing and will report progress as other milestones are met,” Kefi said in a statement on Friday.