Business
Project Equity Financing Update
Project Equity Financing Update.
About this update from Kefi Gold And Copper Plc
[{"type":"text","content":"\n \nRNS Number : 3617V KEFI Minerals plc 08 April 2019 \n\n8 April 2019\nKEFI Minerals plc\n(\"KEFI\" or the \"Company\")\n \nProject Equity Financing Update\nUS$11.4 Million Commitments (Ethiopian Birr Equivalent) Received by ANS\n \nKEFI Minerals (AIM: KEFI), the gold exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, is pleased to provide an update on the project equity financing plans for the Company's Tulu Kapi Gold Project (the \"Project\").\n \nANS Mining Share Company S.C (\"ANS\") has confirmed it has now received its first Project-equity instalment commitments for US$11.4 million (Ethiopian Birr equivalent) from its investors. The amount is higher than the previously anticipated US$9 millon (Ethiopian Birr equivalent). The subscription of this enlarged amount and release of funds into Tulu Kapi Gold Mines S.C (\"TKGM\") will be in the current quarter upon satisfaction of conditions summarised below.\n \nThe remainder of the US$38 million (Ethiopian Birr equivalent) ANS commitment will be subscribed at close of full development funding as previously announced. Following further discussions amongst the stakeholders in the Project it has been mutually agreed that, of the total commitment of US$38 million (Ethiopian Birr equivalent), one third will now be invested via KEFI subsidiary KEFI Minerals Ethiopia Limited (\"KME\") so that ANS will be KEFI's minority partner in KME which controls TKGM and the exploration areas in the Tulu Kapi district, which are considered prospective for potential satellite and stand-alone deposits. The other two thirds of the ANS investment will be directly into TKGM as previously proposed. Through this revised structure the overall economics of the Project and the value of KEFI's interest in the Project remain unchanged.\n \nThe benefits of this optimised approach will include that:\n\n\n\n· \n\n\nKEFI will have a strong partner at the KME table to consider potential new projects alongside KEFI. We expect Ethiopia's mining sector to become more active on the back of our first-mover initiative,\n\n\n\n\n· \n\n\nThat, by virtue of the TKGM partners funding the early stages of the development program before debt-style funding is used,...