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The Tulu Kapi Gold Project remains on track with previous guidance and KEFI, through its subsidiary Tulu Kapi Gold Mines Share Company, has presented its Project finance syndicate and submitted its Project finance plan to the Ethiopian Central Bank for permission that it may proceed as outlined.

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Starting full development of the Project is the highest priority for KEFI and the Ethiopian Government. All key stakeholders are pushing hard to finalise preparations and the Company has undertaken to the MOMP that, upon timely receipt of these confirmations, KEFI will push to financial closing by the end of July 2021, or as near as possible thereto given the local document registration procedures and the COVID-affected limitations of syndicate parties’ physical locations.

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KEFI continues to oversee the physical preparations for full development to be triggered at financial closing, such as:

  • Clearing of new host lands for community members to be resettled;
  • Overseeing the early works programme of detailed engineering and procurement, by principal construction contractor Lycopodium;
  • Supporting the planning and procurement programmes of mining services contractor Corica;
  • Overseeing the ‘new access road’ and ‘electricity connection’ works contracts; under which surveys and procurement has been completed;
  • Triggering compensation procedures for the first resettlers at the Tulu Kapi electrical substation site; and
  • Recruitment of further key personnel for the next stage of the Project

The Tulu Kapi gold project in western Ethiopia is being progressed towards development, following a grant of a Mining Licence in April 2015.

The Company has now refined contractual terms for project construction and operation, together with assembling the full funding consortium and set the conditional terms for the development funding package of c.US$221 million.

Estimates include gold production of c.190,000oz pa. All-in Sustaining Costs (including operating, sustaining capital and closure but not including leasing and other financing charges) remain c. US$800/oz.

Tulu Kapi’s Ore Reserve estimate totals 15.4 Mt at 2.1 g/t gold, containing 1.1 Moz.

All aspects of the Tulu Kapi (open pit) gold project have been reported in compliance with the JORC Code (2012) and subjected to reviews by appropriate independent experts.

A Preliminary Economic Assessment has been published that indicates the economic attractiveness of mining the underground deposit adjacent to the Tulu Kapi open pit, after the start-up of the open pit and after positive cash flows have begun to repay project debts.

An area of over 1,000 km2 adjacent to Tulu Kapi has been reserved for exploration by KEFI upon commencement of development, with a view to adding satellite deposits to development and production plans.