KEFI Minerals receives key development and financial approvals for Tulu Kapi Gold project

An exploration company with a strong portfolio of assets along the highly-prospective Arabian-Nubian Shield has taken one step closer towards beginning production at one of its flagship assets.

KEFI Minerals announced in a statement this week that it had received key development and financing policy approvals for its Tulu Kapi Gold Project from the Ethiopian Government.

The project had received an initial approval back in 2015 (development, social, environment and operational) and the latest announcement represents Ethiopian central bank approval for the Project banking arrangements, complementing its approvals of proposed balance sheet capital ratios and TKGM’s right to hedge the gold price.

“The Government has certainly accelerated the pace in recent times as regards the various regulatory processes for this, the first modern mine development in Ethiopia,” said Harry Anagnostaras, Managing Director at KEFI.

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“All major policy matters are now resolved for the Project. There is every sign that the just-appointed Government leadership at the Federal, Oromia Regional and local levels is focused on making this happen very successfully and smoothly. KEFI and its partners in Project Company TKGM are very appreciative of the priority given to the Project at the same time when so many transformational changes are being made in Ethiopia generally. It is an exciting time to be establishing a new sector in Ethiopia.”

Estimates for the Tulu Kapi project include open pit gold production of c. 140,000oz pa for a 7-year period. All-in Sustaining Costs (including operating, sustaining capital and closure but not including leasing and other financing charges) remain c. US$800/oz. Tulu Kapi's Ore Reserve estimate totals 15.4Mt at 2.1g/t gold, containing 1.1Moz.