KEFI Minerals plc (LON:KEFI) have said that the Tulu Kapi project in Ethiopia has been given the green light.
The miner told the market that a meeting had taken place of the joint venture company, and now that formalities and agreements had been made the project can commence.
KEFI are looking to develop the Tulu Kapi project as part of Tulu Kapi Gold Mines Share Co, and at the general meeting all discrepancies and negotiations had been completed.
This means that the partners can go ahead with the closing of subscription funds with ANS Mining which will provide $38 million funding. The Ethiopian Government have also pledged $20 million on the project.
Harry Anagnostaras-Adams, the executive chair at KEFI and of TKGM, said: “The formal TKGM shareholder meeting was an important step for this closely co-ordinated public-private-partnership for Ethiopia’s first modern mine in decades and has now cleared the way for the closing of the ANS equity subscription.
“The Tulu Kapi gold project is planned to be the largest single export generator in the country and all project planning is designed within the multi-party consortium to make our project a model first-mover in all social, environmental, human resource and technical aspects.”
KEFI’s approval from ANS Mining
At the start of the year, KEFI announced that they had won approval from ANS Mining for their Tulu Kapi subscription agreement.
The firm said the company operating the project, Tulu Kapi Gold Mines Share Co, will now receive the first tranche of ANS Mining funding of $9.5 million.
“Kefi greatly appreciates the confidence and commitment demonstrated by ANS Mining, its board of Ethiopian business leaders and its underlying shareholders, which comprise a broad syndicate of strong organizations in the local banking, insurance and investment sectors,” the company said.
After months of toil and work for KEFI, it seems that operations at the Tulu Kapi Mine will now go ahead.
KEFI will see this as a great victory. Both shareholders and the firm will hope that the last few months of negotiations and agreements on this site will be rewarded with strong discoveries and results.
Shares in KEFI Minerals trade at 1p (+1.06%). 17/2/20 13:04BST.