KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF) hailed the progress made in the first half of 2022, including the £8mln equity fundraising in April that cleared its outstanding liabilities and “reinforce the momentum of its projects” towards first gold pours towards the end of 2024.
It had £2.3mln of cash in the bank at the end of June, on which same day an umbrella financing agreement was signed for the Tulu Kapi gold project in Ethiopia by all project participants.
This agreement, the company said in comments accompanying its interim results, is now leading to the syndicate commitment of the full project finance package expected at the end of October 2022, following years of redesigning the project, negotiations with government and other events in the country.
KEFI remains keen to restart follow-up exploration around Tulu Kapi, said executive chairman Harry Anagnostaras-Adams, where it has identified additional prospects within the district exploration area.
“Whilst awaiting regulatory permission to re-activate the company's Ethiopian exploration, which is critical for long term planning for all stakeholders in the community as well as the company, the exploration focus has been successfully switched to Saudi Arabia,” he said.
Gold & Minerals Ltd (G&M), its vehicle in Saudi Arabia, is drilling at the Hawiah copper-gold project to provide data for an updated mineral resource estimate and preliminary feasibility study (PFS), scheduled for completion by end of 2022.
At its Jibal Qutman gold project, G&M said it has received formal notification from the government that land access issues which halted the mine development application in 2016 are now resolved, clearing the way for the re-issuance of exploration licences as a precursor to the granting of a mining licence.
Two of the three exploration licences have already been received post period end, it said, and a definitive feasibility study is being prepared on production of circa 500,000 oz over 10 years as compared with the original preliminary economic assessment based on circa 200,000 oz.
The company made a £2.9mln loss for the period, compared to £2.2mln a year ago.
"KEFI is now better positioned than it has ever been with the improvement in the local working environment in both Ethiopia and Saudi Arabia allowing us to focus on our goals," said Anagnostaras-Adams.
"The successful launch of Tulu Kapi and then Jibal Qutman within the following six months or so, should see first gold pour for both at the end of 2024.
"These two projects, plus the Hawiah project lined up for sequential construction schedules is intended to lead to combined production of c.400,000 oz gold or gold-equivalent per annum by 2026."