25th Jan 2019 13:24
LONDON (Alliance News) - KEFI Minerals PLC said Friday its Tulu Kapi gold project partner has increased its equity commitment, and the company has now received all outstanding approvals from Ethiopian government for the project.
The exploration company said that its local Ethiopian private-sector project partner, ANS Mining Share Co, has increased its investment commitment to subscribe to new shares in the project company Tulu Kapi Gold Mines Share Co to USD38 million from USD30 million on previously announced terms. The first USD9 million instalment remains due when resettlement is triggered by the relevant regulatory authorities.
ANS Mining also has nominated its appointees to the project company's board pursuant to the share subscription agreement.
"ANS Mining's decision to increase its equity subscription in Tulu Kapi Gold Mines Share Co by almost 30% to USD38 million is clear testament of not only their commitment to the project, but also the upside and potential of Tulu Kapi. Whilst KEFI will reduce its overall interest in Tulu Kapi Gold Mines Share Co from an estimated 54% to an estimated 50.1%, the additional equity investment of USD8 million by ANS Mining serves to derisk the financing of the project further," KEFI Managing Director & Tulu Kapi Gold Mines Chairman Harry Anagnostaras-Adams said.
KEFI intends to trigger project development phase for the Tulu Kapi project upon receipt of the Ethiopian prime minister's ratification. The company has already received all outstanding government consents for the project.
The company said its government-sector project partner, the Federal Ministry of Finance & Economic Cooperation, has started engineering works for the construction of off-site infrastructure in exchange for shares in the Tulu Kapi project company.
Shares in KEFI were trading 0.6% higher at 1.75 pence each on Friday afternoon.
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