KEFI Gold and Copper PLC (LON:KEFI), the gold and copper exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, has announced that development activities at the Tulu Kapi Gold Project, part of the KEFI-operated Ethiopia joint-venture Tulu Kapi Gold Mines Share Company have recommenced.

Following the abatement of Ethiopia’s civil war at the end of 2021 and its State of Emergency being lifted, TKGM has worked intensely with the Ethiopian Ministry of Mines to monitor the situation to ensure that it is appropriate for the recommencement of activities at the Tulu Kapi site and in the wider district.  The Company is pleased to report that over the past two months the security situation has remained stable at both the site and the preferred transport routes, enabling activities at the Tulu Kapi site to recommence in an appropriately managed manner.

The Project’s principal contractors, Lycopodium (plant construction) and Corica (mine services), are expected to deliver the final costings for confirmation at the end of April 2022. The anticipated final capital estimate for the Project has not changed from previous guidance and remains fully covered by the previously announced non-binding subscriptions from the Project’s financing syndicate, with any required residual contribution also now covered in the event of exercise of the Company’s warrants issued in December 2021.

Recent meetings with the Project’s senior lenders and other finance syndicate members have reconfirmed the targeted financial closing in in mid-2022, subject to the security situation remaining stable as activities increase over the coming months, and various documentation and government administrative tasks being completed. The independent security assessors have commenced regular field inspections.

TKGM is now recommencing refurbishment of the existing site camp to accommodate the initial construction workforce and have recently completed detailed design for the procurement and construction of: the security camp; a new all-weather access road; the permanent camp; water dam 1; plant and administrative buildings; Bir-Bir river pump station and pipeline; tailings storage facility – stage 1; process plant; bulk fuel and lubricant storage area; grade control drilling; on site metallurgical testing laboratory; explosive supply and storage; and the mining fleet service area.

Tasks to be undertaken ahead of Project finance closing are summarised as follows:

·    March 2022:

o  All field programmes recommenced for community consultations and new host land preparations, with regular independent security monitoring over the ensuing months.

o  Remaining few Ethiopia regulatory administrative tasks completed, such as endorsement of historical costs, working rules for the London clearing account to avoid restrictions of capital controls and clearance for both banks to lend on same terms.

o  Updated term sheet for offtake-linked mezzanine facility now involving senior lenders as well the metals trader.

·    April 2022:

o  Launch of Tulu Kapi Foundation, administered with local authorities, community representatives and Ethiopian Evangelical Church of Mekane Yesus.

o  Final pricing agreed with contractors.

·    May-June 2022:

o  Drafting of the remaining detailed documents, flowing from the regulatory approvals, mezzanine term sheets and Project contractor pricing updates in March and April.

o  Insurance package and pricing confirmations.

o  Independent security review and decision as to when to sign final documents.

o  Signing of binding documents by all

Harry Anagnostaras-Adams, KEFI Gold and Copper Executive Chairman, commented: “It is great to see that Ethiopia has settled down so quickly over the past two months and that TKGM’s teams are back in the field for launch preparations.  Everyone is now pushing for full Project launch.

“And it’s doubly impactful that the turnaround in Ethiopia has coincided with a take-off of our projects in Saudi Arabia. KEFI has turned onto the front foot in both jurisdictions, after particularly frustrating years in both.

“KEFI now has three advanced development gold and copper-gold projects with significant resource upside in two now-supportive jurisdictions of the Arabian Nubian Shield, and in which our beneficial interest is already the equivalent of 2.1 million oz gold. I look forward to keeping shareholders appraised of our progress.”