5th Jun 2019 11:40
LONDON (Alliance News) - KEFI Minerals PLC on Wednesday said it targets first gold production from its Tulu Kapi project in Ethiopia in mid-2021.
The gold exploration and development company also said its 2018 pretax loss narrowed to GBP5.0 million from GBP6.3 million loss reported a year earlier.
KEFI Minerals said, since taking control of Tulu Kapi in 2015, it spent USD20 million on this "robust" project. Various development activities have already started, the company said, with the government of Ethiopia committing a USD20 million to install the offsite infrastructure in exchange for earning project equity and has started the detailed design and tender preparation process.
KEFI Minerals said the next step in project development is community resettlement and detailed engineering and procurement for the on-site infrastructure. Then full funding can be closed and major construction works can commence.
"2018 was a year of two halves for KEFI. Whilst the first half was orientated around consolidation as Ethiopia exited its states of emergency, the second half was one of significant development and progress as the company formalised its strategic partnerships with the government of Ethiopia and Ethiopian investors at the asset level of its flagship Tulu Kapi project," said Chair Harry Anagnostaras-Adams.
Looking forward, the company said it expects to start commissioning of Tulu Kapi towards the end of 2020, with full gold production anticipated from mid-2021.
KEFI shares were trading 3.9% lower on Wednesday at 1.42 pence each.
Related Shares:
Kefi Gold & Copper