Business
Government of Ethiopia to invest $20m in Tulu Kapi
Government of Ethiopia to invest $20m in Tulu Kapi.
About this update from Kefi Gold And Copper Plc
[{"type":"text","content":"\n \nRNS Number : 2811Y KEFI Minerals plc 16 May 2016 \n\n 16 May 2016\n \nKEFI Minerals plc \n(\"KEFI\" or the \"Company\")\n \nGOVERNMENT OF ETHIOPIA TO INVEST US$20M IN TULU KAPI GOLD PROJECT\n \nKEFI Minerals (AIM: KEFI), the gold exploration and development company with projects in the Kingdom of Saudi Arabia and the Federal Democratic Republic of Ethiopia, is pleased to report that, further to the Company's announcement of 11 November 2015, it has received formal confirmation from the Government of Ethiopia of its commitment to invest US$20 million for equity in the Tulu Kapi Gold Project (the \"Project\"). This investment will provide the Government of Ethiopia with an equity interest in KEFI Minerals (Ethiopia) Ltd (\"KME\"), a wholly-owned subsidiary of KEFI Minerals plc that owns and operates the Project, of approximately 20% based on the projected enlarged paid-up share capital of KME (c. 25% including the Government's pre-existing 5% free carried-interest). \n \nMonies invested by the Government will be used to fund the roads, power and certain other associated infrastructure required by the Project. \n \nThe investment commitment by the Government implies a Project value of approximately US$100 million at its current stage of development and reflects the estimated aggregate of equity capital which will have been invested into KME. As reported on 8 March 2016, at a typical consensus gold price of US$1,250/oz, Project NPV for the open-pit project and anticipated underground project is c. US$200 million, once fully funded and based on the unleveraged after tax cash flows discounted at 8%.\n \nMr Harry Anagnostaras-Adams, Executive Chairman, said:...