KEFI Minerals plc (LON:KEFI) and the Ethiopian government have formalised the structure for the company that will develop the Tulu KapI gold mine in the country.
The AIM-listed junior will own 75% of Tulu Kapi Gold Mines Share Company Limited (TKM) with the government the remaining 25% comprising a 5% free carry and 20% for US$20m of investment in the project.
Exploration projects outside the Tulu Kapi Mining Lease area are not part of TKM and remain 100% owned by KEFI.
The composition of TKM's board and its corporate governance mechanisms reflect the respective ownership levels of KEFI and the Ethiopian Government.
Kefi said finalising the structure was an important initial formality within the timetable and will allow the company to start development activities in the second half of 2107.
“This will follow financing and community resettlement, both of which the company is actively implementing.”