Business
Government of Ethiopia to invest in Tulu Kapi
Government of Ethiopia to invest in Tulu Kapi.
About this update from Kefi Gold And Copper Plc
[{"type":"text","content":"\n \nRNS Number : 3665F KEFI Minerals plc 11 November 2015 \n\n 11 November 2015\n \nKEFI Minerals plc \n(\"KEFI\" or the \"Company\")\n \nGOVERNMENT OF ETHIOPIA TO INVEST US$15-20M 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 it has received formal confirmation from the Government of Ethiopia of its intent to invest US$15-20 million 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 20-25% based on the projected enlarged paid-up share capital of KME (c. 25-30% including the Government's pre-existing 5% free carried-interest). \n \nThe intended investment by the Government implies a Project value of approximately US$75 million at its current stage of development and reflects the aggregate of equity capital invested into KME. At a typical consensus gold price of US$1,250/oz, Project NPV is c. US$168 million, once fully funded and based on the unleveraged after tax cash flows discounted at 8%.\n \nMonies invested by the Government will be used to fund the roads, power and certain other associated infrastructure required by the Project. This formal investment decision follows last month's appointment of the preferred project contractors and supports the Company's timetable to assemble the full financing syndicate in Q4 2015.\n \nMr Harry Anagnostaras-Adams, Executive Chairman, said: \"KEFI Minerals is honoured to have received from the Government of Et...