KEFI Minerals shareholders approve capital raisings

KEFI Minerals, the gold exploration and development company with projects in Ethiopia and Saudi Arabia, announces that at its General Meeting held earlier today, all resolutions were duly passed including the latest capital raisings.

As a result, the Company will now proceed with the allotment and issue of the Placing Shares and the Warrants, each as detailed in the Company’s announcement made on 27 April 2022, according to the press statement from the Company.

KEFI operates in Ethiopia via Tulu Kapi Gold Mines S.C and is developing an industrial scale modern operation. The Company says by the time it is in full production of USD250 million of export gold annually, Tulu Kapi will employ over 1,000 local people directly.

These financings are a part of the plan for financing our projects in Ethiopia and in Saudi Arabia. The Company has assembled first-tier project syndicates in both countries and, whilst KEFI’s own capital contributions are relatively small compared with the other planned sources of development financings, as project leader it is important that KEFI makes its finance commitments at certain points in time that are appropriate vis a vis its partners, banks and contractors.

KEFI pivoted onto the front foot at the end of 2021, following the end of the Ethiopian civil war in the north of the country and because of exploration results and regulatory improvements in Saudi Arabia. KEFI appears to have a tail-wind on several key fronts: several projects at an advanced stage and against a backdrop of geopolitics having turned in our favour in both countries, as have the market prices of the metals underlying our resources.

The Company is focussed on the sequential development path of three advanced projects over the next 3-4 years with targeted aggregate project production of 365K oz per annum gold and gold-equivalent copper, in which KEFI will have a beneficial interest of c.187K oz per annum gold and gold-equivalent copper. KEFI’s reported mineral resources today provide a solid starting position for growth.

Mineral resources are now a combined 4.7 million oz gold-equivalent and all ore bodies remain open. The Company’s beneficial interest in the in-situ metal content of the three projects is today a combined 2.1 million in gold equivalent terms.