Aim-listed gold and copper explorer and developer Kefi Minerals remains on track with the development of multi-party project financing activities and the early development works of its Tulu Kapi Gold Mines Share Company joint venture project in Ethiopia.
Kefi has maintained the full funding syndicate for the Tulu Kapi project and plans to sign the funding umbrella agreement this month to demonstrate the full funding commitment, in particular to the Ethiopian Ministry of Mines.
It also plans to evidence the full funding capacity of each syndicate member to the ministry, clearly set out any outstanding conditions for execution of the underlying definitive agreements between the respective individual counterparties to the umbrella agreement, and trigger full project construction in the Ethiopian dry season, starting in October.
Kefi also intends to execute the underlying detailed funding agreements with each of the individual counterparties to the umbrella agreement. These include security protection on transport routes, as well as at the project sites, insurance policies and the registration of mortgages and direct agreements between the banks and government.
The company also plans to complete the remaining few government tasks associated with the project, including confirming security arrangements and confirmation of various other project matters and protections for the banks, such as registration of historical costs, exploration rights in the areas worked by Kefi and from within which the Tulu Kapi mine development was successfully planned.
Nonetheless, Kefi, in the past month, has received a final pricing proposal from the mining contractor, which is being reviewed. It has also commissioned further refinements of the process plant construction contract and pricing.
However, current supply chain strains internationally warrant intensified due diligence in this regard.
Further, Kefi has also collaborated with the local government authorities to implement the first stage of resettlement and compensation under the agreed protocols as per World Bank International Finance Corporation’s performance standards.
It has also conducted several community and local-authority engagement meetings, and presented at the Mine Africa forum in Toronto to promote Ethiopia for mining development.
As Kefi progresses with the development, it is keeping the Ethiopian Ministry of Mines informed to ensure that the procedure is satisfactorily met to demonstrate good faith and progress that is as fast as reasonably possible.
Kefi executive chairperson Harry Anagnostaras-Adams says the company has significant momentum as it progresses three advanced projects in two countries that are now overtly pro-development.
“These three projects provide the opportunity for [Kefi] to establish itself as a production leader in the Arabian Nubian Shield, having already established itself as an exploration leader with a now-established mineral resources of 4.7-million ounces of gold-equivalent in Ethiopia and Saudi Arabia.”