LSE-listed gold and copper explorer and developer Kefi Minerals reports that its Ethiopia-based Tulu Kapi gold project remains on track with previous guidance and that it has, through its subsidiary Tulu Kapi Gold Mines (TKGM), presented its project finance syndicate and submitted its project finance plan to the Ethiopian central bank for permission to proceed.
This follows a long, thorough and rigorous due diligence process by the senior lenders.
Kefi, in a statement, notes that starting full development of the project is its and the Ethiopian government’s highest priority.
While the National Bank of Ethiopia conducts its review, the other outstanding administrative details are being progressed with the various Ethiopian government agencies, including the Ministry of Mines and Petroleum, the Ministry of Finance, the Ethiopian Roads Authority and the Ethiopian Electricity Power Corporation.
These are normal compliance procedures to enable Kefi, TKGM and its syndicate of financiers and contractors to proceed to financial close.
These procedural matters include requests for finalising confirmations of registration of historic investment, the establishment of correspondent bank account arrangements, confirmation of construction schedules for road and electricity access and various other administrative matters already agreed in principle.
Upon timely receipt of these confirmations, Kefi will work towards financial closing by the end of July, or as near as possible thereto given the local document registration procedures and the Covid-19-affected limitations of syndicate parties’ physical locations.
RECENT DEVELOPMENTS
Kefi continues to oversee the physical preparations at Tulu Kapi for full development to be triggered at financial close, such as clearing of new host lands for community members to be resettled and overseeing the early works programme of detailed engineering and procurement by principal construction contractor Lycopodium.
In addition, preparations also include supporting planning and the procurement programmes of mining services contractor Corica, overseeing the new access road and electricity connection works contracts under which surveys and procurement have been completed.
Also, Kefi is triggering compensation procedures for the first resettlers at the Tulu Kapi electrical substation site, and is recruiting further key personnel for the next stage of the project.
SAUDI ARABIA
Meanwhile, through its 34%-owned joint venture company Gold & Minerals, Kefi’s Saudi Arabia-based Hawiah gold project is under way with work to finish the Phase 4 drilling programme in the third quarter with the goal of reporting an expanded and upgraded mineral resource.
With Ramadan having ended, drilling since late May has been undertaken on a 24/7 basis with three rigs on site.
As such, Kefi reports that the preliminary feasibility study for the potential start of development of the Hawiah deposit in 2023 continues.
Other recent activities at Hawiah include the completion of the environmental and social baseline study, metallurgical testing progressing with reasonable recoveries to date, indicating all principal metals of copper, gold, zinc and silver.
Kefi has also completed construction of the exploration camp at Hawiah.