Business
Tulu Kapi Mining Licence Tenure Confirmed to 2035
Tulu Kapi Mining Licence Tenure Confirmed to 2035.
About this update from Kefi Gold And Copper Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 1320R\n Kefi Gold and Copper PLC\n 03 November 2021\n \n \n \n \n 3 November 2021\n \n KEFI Gold and Copper plc\n (\"KEFI\" or the \"Company\")\n Tulu Kapi Mining Licence Tenure Confirmed to 2035\n \n \n KEFI (AIM: KEFI) is pleased to report receipt on 2 November 2021 from the Ethiopian Ministry of Mines (\"MoM\") of formal confirmation that the mining licence for the Tulu Kapi Gold project (\"Tulu Kapi\" or the \"Project\"), held by Project company Tulu Kapi Gold Mines Share Company (\"TKGM\"), remains in good standing (for expiry per the terms of issuance in 2035) subject to TKGM's on-going compliance with the regulations and the MoM's requirement for TKGM to re-confirm by 31 January 2022 that it has procured the necessary Project finance. Subject to those conditions and a successful Project launch, the licence can be renewed by TKGM on expiry in 2035 should the Project prove successful in expanding ore reserves and mine life.\n The Company has confirmed to the MoM its intention to launch key Project development activities and confirm the identified Project finance in December 2021. The Company remains focused on production commissioning in 2023. \n We are appreciative of the time and effort given to recent consultations by the MoM and also by the lead-financiers and contractors to TKGM, all of whom are supportive and have reiterated that they intend to proceed subject to normal conditions for drawdown. \n The lead-finance parties have already been collaborating for over three years preparing the Project for launch, during which time technical and legal due diligence has been completed and, at the same time, we have arranged for several important Ethiopian Government documentary confirmations. These include the endorsement of historical pre-development expenditures, and the definitive development commitments regarding electricity-connection and new additional road access. During this period there have also been some pre-requisite policy proclamations by the relevant Ethiopian Government agencies to accommodate normal international mining project finance conditions, including the permission for bank accounts in major international financial centres, a project finance capital ratio of 70/30 debt/equity and permission for market-based private-sect...