Aim-listed Kefi Gold and Copper reports that further significant progress has been made at its Tulu Kapi gold project, in Ethiopia, during May.
It adds that it is focusing on completing preparations for full project launch after the company's annual general meeting (AGM), which is expected to be convened on June 30.
Kefi remains on track to start project commissioning at Tulu Kapi in late 2022 and to reach full production by mid-2023, in line with previous guidance.
The project company, Tulu Kapi Gold Mines Share Company (TKGM), has submitted to the Ethiopian regulatory authority, for its formal confirmation of compliance as part of the project finance requirements, an updated detailed project development and production plan.
While final approval of this updated plan is awaited as a condition precedent of the project financing, TKGM has exchanged formal confirmations with the licensing authority regarding TKGM's commitment to honour the already outlined project timetable.
A new mining contractor, Corica Group, is replacing the previous mining contractor on better terms after re-tendering of the contract.
A letter of intent has been signed with them covering the major works package due to start its procurement any time from July.
The early works programme with principal process design and construction contractor Lycopodium has started this month and the major works package has been agreed to start any time from July.
Responses are up to date in respect of the senior lenders' due diligence requirements for credit approval.
The timetable for project finance remains for execution of detailed documentation as soon as possible after the AGM, then equity subscriptions for launch of full development, followed by debt drawdowns during the fourth quarter this year.
Also, 150 local personnel have been employed to prepare new host lands.
TKGM has started compensation procedures for the small portion of the community to be resettled that occupies the site for the planned electricity substation and starter homes have been fabricated and are being delivered to site for assembly.