16th Mar 2015 07:39
LONDON (Alliance News) - Kefi Minerals PLC Monday said the Ethiopian Ministry of Mines has approved the Tulu Kapi gold project, bringing it a step closer to securing a mining license and said the development of the project will cost USD30 million less than originally expected.
The company's application for the Tulu Kapi gold project will now be submitted before the Council of Ministers to secure a mining agreement, followed by a mining license and full permitting to develop and operate the gold project for 20 years, Kefi said in a statement.
Kefi also said the planned development costs for the project have been reduced based on the initial bids received from mining contractors and on the terms offered to the company for the acquisition of suitable process plants.
Kefi has forecast the total development expenditure for the project will now be around USD120 million compared to its original budget of USD150 million.
The company plans to fund the development of the Tulu Kapi gold project using USD100 million of project debt financing and USD20 million "being financed by one of a number of possible sources currently being assembled, including financing from contractors and equity at the project or parent company level," it said.
"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," said Executive Chairman Harry Anagnostaras-Adams.
By Joshua Warner; [email protected]; @JoshAlliance
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