21 January 2025
KEFI Gold and Copper
plc
("KEFI" or the
"Company")
Legal Claims Against KEFI
Dismissed
Reinforces Progress on Tulu Kapi Project
Financing
KEFI (AIM: KEFI), the gold and copper
exploration and development company focused on the Arabian-Nubian
Shield, is pleased to report that the English High Court of
Justice, King's Bench, has handed down its judgement in relation to
a case against the Company, detailed in the Company's
2023 Annual Report, that dismisses all claims against
KEFI and awards to KEFI all of its counterclaims. This was the last
outstanding attempt in a string of threats of interference against
KEFI, all of which have now been successfully dismissed.
As regards this reported judicial outcome, the
King's Bench also noted that, prior to the matter going to Court,
any claims and accusations against KEFI's Executive Chairman and
the President of one of KEFI's banks were withdrawn. The
Company has always considered the claims to be spurious and without
merit, but it is nevertheless helpful that the matter has been
resolved in KEFI's favour, so as not to interfere with the progress
of the Company's Tulu Kapi Gold project or potentially impose a
material financial burden on the Company. This also
extinguishes the need for independent certification of readiness
for finance closing in respect of this matter.
Tulu Kapi
Project Financing - Update on certification and formalisation for
finance closing
KEFI has completed Early Works.
Both banks' 2024 credit approvals are now being
updated for finalisation in February 2025 as part of the
certification and formalisation process preparing the project for
financial close at the end of Q1 2025 and then to launch all Major
Works as funds are drawn down in the approved sequence against the
disbursement requirements.
Notable recent progress in the certification
and formalisation process includes:
·
Receipt from the banks the proposed updated detailed terms
and conditions for an expanded secured loan package at US$240
million, instead of the previous US$190 million as detailed in the
Company's announcement on 6 November 2024;
· All
threatened and actual litigation now successfully dealt
with;
·
Already-received approvals have satisfied all substantive
conditions precedent set out in 2022 upon restarting preparations
to launch the Project (after the lifting of Ethiopia's State of
Emergency as per the Company's announcements on 14 February 2022
and 30 June 2022). The formalisation process is, for good order,
wrapping up documentation for finance closing;
·
Detailed documentation in hand across all of the parties and
issues; and
·
Certain Major Works brought forward to further de-risk the
Project:
o Main Access
Road started construction in Q4 2024 to more than halve travel time
from the bitumen highway and simplify journey
management;
o We have fully
deployed teams for safety, security and community liaison,
involving both Government and private sector
specialists;
o Completed
compensation for resettlement of a key land package and started the
property survey with approximately one third of land holders, to
ensure complete alignment before triggering Major Works;
and
o Triggered
refreshment of fixed price lump sum components of construction
contracts, ahead of financial close at the end of Q1
2025.
KEFI Executive
Chairman, Harry Anagnostaras-Adams,
commented:
"The Tulu
Kapi Gold Project has involved much 'precedent-setting' as the
first international project finance transaction in Ethiopia, which
itself has transitioned through democratic reforms and a focus on
private sector development. KEFI has been instrumental in
negotiating reforms across the board, from removing exchange
controls to creating permanent security protection. And Ethiopia
has ignited a major growth spurt, particularly emphasising the
minerals sector.
"We are
excited to now be wrapping up preparations to launch all Major
Works for our tightly risk-mitigated project - well worthwhile
given the excellent outlook for returns to all
stakeholders."
KEFI Gold and Copper plc
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Harry Anagnostaras-Adams (Executive
Chairman)
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+357 99457843
|
John Leach (Finance
Director)
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+357 99208130
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SP
Angel Corporate Finance LLP (Nominated Adviser)
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+44 (0) 20 3470 0470
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Jeff Keating, Adam Cowl
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Tavira Financial Limited (Lead Broker)
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+44 (0) 20 7100 5100
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Oliver Stansfield, Jonathan
Evans
|
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IFC
Advisory Ltd (Financial PR and IR)
|
+44 (0) 20 3934 6630
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Tim Metcalfe, Florence
Chandler
|
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3PPB LLC (Institutional IR)
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Patrick Chidley
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+1 (917) 991 7701
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Paul Durham
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+1-203-940-2538
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