logo-loader

UPDATE - KEFI Minerals gets Ministry of Mines approval for Tulu Kapi

Last updated: 23:40 16 Mar 2015 AEDT, First published: 00:40 17 Mar 2015 AEDT

agreement_grayscale350_5506de76b1a9a

---ADDS SHARE PRICE & BROKER COMMENT---

Shares in KEFI Minerals (LON:KEFI) rose as it moved a step closer to receiving the official go ahead for its flagship gold project.

Earlier the group said the Ethiopian Ministry of Mines had approved the mining licence for the Tulu Kapi project. The application is now before the country’s Council of Ministers.

The green light will mean KEFI is fully permitted to develop the mine, which is expected to be commissioned by the end of next year and is being designed to produce 86,000 ounces of the precious metal a year.

The licence allows it to operate for the next 20 years, but also fires the starting pistol on the financing and construction phase.

The cost of building the mine is put at around US$120mln, US$100mln of which will be project debt.

The balance will be found from “a number of possible sources”, including financing from contractors and equity at the project or parent company level.

Chairman Harry Anagnostaras-Adams said: "It is an exciting period for KEFI with a great deal of progress occurring across the board.

“As we rapidly move towards the receipt of the mining licence and advance our funding plans, we remain on track to start development at the Tulu Kapi gold project in 2015 for production in 2017."

The stock rose 0.01p at 1.03p, valuing the business at £15mln.

Broker SP Angel said:  “We are confident KEFI Minerals will gain its full mining permits over the next few months and we are hopeful the company will negotiate suitable concessions to enable the economic development of the project. Construction should start in the second half.

"There appears to be significant finance available for near-production mining projects where the cost of production is significantly below the relevant commodity price.”

£5.5mln fundraise sees KEFI Minerals fully funded for Tulu Kapi construction

Harry Adams, executive chairman of KEFI Minerals plc (LON:KEFI), tells Proactive's Andrew Scott they've raised £5.5mln through a placing and subscription to pay the costs of closing the financing deals at the project level for the construction of their Tulu Kapi Gold Project in...

on 15/6/18