Aim-listed Kefi Gold and Copper has reported recent across-the-board progress at its Tulu Kapi gold project, in Ethiopia.

Preparations for full launch of the Tulu Kapi project are advancing across all fronts for signing this quarter of the assembled detailed definitive documentation.

Property surveys for Phase 1 resettlement involving about 350 properties and about 130 households are now being reviewed against strict verification standards and procedures, the company emphasises.

The phased compensation and subsequent resettlement will comply with Ethiopian law and World Bank International Finance Corporation performance standards, it adds.

Updated tender prices for mining services are being evaluated.

Construction of initial site facilities is under way, including expanded water supply and camps for construction and security.

This quarter, focus is on completing government approvals of residual administrative matters, including Africa Finance Corporation membership ratification by the Ethiopian Parliament and independent certifications for the project’s fixed price construction contracts, security, community commitments and overall schedule.

All contractors have been asked to prepare to proceed from the end of this quarter.

Operational management is being installed at the project company Tulu Kapi Gold Mines (TKGM), with Simon Cleghorn as MD and Theron Brand as FD.

FINANCE PLAN

Kefi says it continues to optimise the finance syndicate at the subsidiary level.

It has spent $300-million capital requirement net of capital expenditure and of contractor capital commitments.

“The preparations for full launch of Tulu Kapi gold project are advancing across all fronts for signing this quarter of the assembled detailed definitive documentation. The economic metrics continue to improve, and the stakeholder support is across-the-board,” executive chairperson and founder Harry Anagnostaras-Adams highlights.

“Excluding the potential of the underground resources at Tulu Kapi, the business plan model projections results in over seven years of production, averaging 167 000 oz/y, generating a net cash flow to project shareholders of $1.1-billion to $1.6-billion at gold prices of $2 400/oz to 3 000/oz over the life of the project,” he adds.