Meanwhile, the Ethiopian Ministry of Mines, Petroleum and Natural Gas has signed off the transfer of the mining licence from KEFI
Minerals (Ethiopia) Limited (KME) to Tulu Kapi Gold Mines Share Company Limited (TKGM), the jointly-owned project company now owned by the Government of Ethiopia (via the Ministry of Finance and Economic Cooperation) and KME.
An area of 1,100 square kilometres adjacent to Tulu Kapi has been reserved for exploration by KEFI
upon commencement of development, with a view to adding satellite deposits to development and production plans.
KEFI looks forward to exploring its upgraded portfolio of targets with partner ARTAR, a leading Saudi conglomerate.
During the next two years Tulu Kapi is to be built as a 140,000 oz pa gold producer and, at the current gold price of $1,300/oz combined with any of the contemplated financing scenarios, KEFI shareholders beneficial interest in the net free cash flow per annum (after debt service and tax) exceeds the Companys current market capitalisation.
As per KEFI, the estimated annual gold production at the Tuku Kapi gold mine for a 10-year period is 100,000oz.
KEFI Minerals has received confirmation that the Government of Ethiopia will invest $20m in the Tulu Kapi gold project.
Harry Anagnostaras-Adams, Executive Chairman of KEFI
Minerals, commented: We are pleased with the tremendous progress made in the first six months of the year as we built on the momentum of 2015.
The update encompasses the activities of KEFI
Minerals (Ethiopia) Ltd ("KME") in Ethiopia and Gold & Minerals Ltd ("G&M") in Saudi Arabia.
seeks to use the funds to develop the roads, power and different infrastructure for the operation.
After concluding the feasibility study KEFI
Minerals inked large scale gold development agreement last April with the then Ministry of Mines current Ministry of Mines, Petroleum and Natural Gas.
The operator of the new license, KEFI
holds a 40% stake, with its partner holding the remaining 60%.
5 Million, will bring KEFI
Minerals ownership to 100% of the Tulu Kapi target situated in Ethiopia.