29th Feb 2016 10:15
LONDON (Alliance News) - KEFI Minerals PLC on Monday said its Tulu Kapi Gold Project in Ethiopia remains on track for financing in mid-2016 and for production at the end of 2017.
The gold miner said the front-end engineering and design was delivered on schedule this month by its contractor, while KEFI has significantly expanded the proposed exploration activity to occur in the vicinity of the planned Tulu Kapi ore processing facility.
It said it has refined its plans for the restoration of community members' livelihoods and would be creating a community development foundation.
KEFI said the capital estimate remained the same at USD130.0 million, including transaction, financing and insurance costs. It said it continued to assemble its international financing syndicate and was preparing legal documentation with the Government of Ethiopia for a proposed USD20.0 million project equity investment, which it announced in November.
"It is gratifying that we continue to progress with the syndicate that we had targeted from the outset - all leaders in their field," said John Leach, finance director of KEFI Minerals.
"This is a testament to the excellent work completed by our team and contractors, which has transformed Tulu Kapi into a robust project, and also to the commitment demonstrated by the Government of Ethiopia to the development of the mining sector - commencing with Tulu Kapi as the first international-financed mine development project," Leach added.
Shares in KEFI were down 2.1% at 0.328 pence on Monday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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