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KEFI Minerals states that further to the announcement made in December 2019, in relation to its Tulu Kapi Gold Project, the subscription agreement into the project company, Tulu Kapi Gold Mines Share Company was duly executed by ANS Mining Share Company on 5 January 2019.

This followed the completion its own internal processes in accordance with local procedures.

The existing Tulu Kapi Gold Mines Share Company (TKGM) shareholders, KEFI and the Ethiopian Government, have also approved the issue of TKGM shares to ANS Mining.

Read: KEFI chooses bank-loan over bond-lease finance proposal

KEFI greatly appreciates the confidence and commitment demonstrated by ANS Mining, its board of Ethiopian business leaders and its underlying shareholders, which comprise a broad syndicate of strong organisations in the local banking, insurance and investment sectors.

Read: KEFI Minerals subsidiary launches Tulu Kapi gold project

Combined with the commitments of the community and Government at all levels, this is truly an inclusive and broad-based public-private partnership with majority Ethiopian ownership.

This is already proving invaluable in traversing the political and security landscape of such a high-growth and fast-changing country. KEFI has committed to installing into TKGM all the systems and expertise required to develop and operate this first modern mine development in Ethiopia to the highest international standards environmentally, socially and in all other respects.

Read: KEFI Minerals to proceed with gold project in Ethiopia

The company will maximise local participation in all aspects of the project and has already built a school, provided local water supply and launched a project to initiate industry-wide training in parallel with the project start-up.

The terms of the project equity subscription remain as previously stated and summarised in the company’s announcement on 25 November 2019.

The existing TKGM shareholders have been very supportive of the project and now TKGM will be further empowered by the transfer of the first tranche of the ANS Mining funding of US$9.5 million to TKGM during January 2020, following the completion of certain procedural matters.

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Harry Anagnostaras-Adams, Executive Chairman of KEFI comments:

“I am delighted to confirm the signed subscriptions of ANS Mining into the Project company. Whilst we have been working closely with ANS Mining for some time and developed an excellent relationship, I am now pleased to be able to welcome them formally as partners.

“Following first funds flow this month we will commence phase one of the community resettlement, trigger debt implementation and detail the final procurement and contractual arrangements with the principal Project contractors.

“These are exciting times and I look forward to updating shareholders over the coming weeks and months as we move forward with the development of Tulu Kapi.”