11th Nov 2015 12:10
LONDON (Alliance News) - Gold explorer Kefi Minerals PLC on Wednesday said it has received formal confirmation from the Ethiopian government that it will invest USD15-20 million in the Tulu Kapi gold project.
Kefi said the investment will give the Ethiopian government an equity stake in Kefi Minerals (Ethiopia) Ltd, Kefi's subsidiary which owns and operates the project. The government will get a stake of around 20-25% in the business.
The intended investment implies a project value of around USD75.0 million at its current stage of development. At a typical gold price of USD1,250 per ounce, the net present value of the project is around USD168.0 million.
The investment from the government will be used to fund the roads, power and other infrastructure required by the project.
"Kefi Minerals is honoured to have received from the Government of Ethiopia the formal confirmation of its intended equity investment into the Tulu Kapi Gold Project. This demonstrates their commitment to the project and confidence in our ability to deliver it," said Kefi Executive Chairman Harry Anagnostaras-Adams.
Kefi shares were up 15% on the news to 0.46 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Kefi Gold & Copper