KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF) has said it is working on the final security and administrative arrangements at the Tulu Kapi mine in Ethiopia with the finance package to build the gold mine largely in place.
Tulu Kapi will now be 70%-80% owned by KEFI, it added, while its Jibal Qutman gold and other projects in Saudi Arabia will be 25%-30% owned depending on refinements to final financing refinements.
"At Tulu Kapi in Ethiopia, the project finance is conditionally in place and, with the government, we are ensuring that all security and administrative arrangements are also in place,” said Harry Adams, executive chairman in a statement.
"At Jibal Qutman in Saudi Arabia, whilst we had originally defined a starter project at then-lower gold prices, we are completing a feasibility study on a larger project at today's higher gold prices."
Adams added that from 2025 KEFI's beneficial interest in the two projects' aggregate gold production will be in the order of 140,000 ounces (oz).
"At the current gold price of US$2,000/oz, KEFI's beneficial interest in the estimated Net Operating Cash Flow from Tulu Kapi alone is estimated to be c.£75mln average per annum and in the NPV is estimated at £207mln, or respectively 1.8p and 5p per current KEFI share in issue,” he said.