- KEFI Minerals has issued an operational update for the period from 1 July to 31 August. The update encompasses the activities of KEFI Minerals (Ethiopia) Ltd in Ethiopia and Gold & Minerals Ltd ("G&M") in Saudi Arabia.

Tulu Kapi gold project, Ethiopia (wholly-owned by KEFI; government entitled to 5% free carried interest):


- No slippage in KEFI's estimate of total capital requirement of c. US$130-140 million, inclusive of financing costs and an allowance for contingencies

- Completion of the evaluation process by the Development Bank of Ethiopia and the clearance of the proposed maximum senior debt-gearing of c. US$85 million by the National Bank of Ethiopia (the central bank)

- Encouraging dialogue with a number of potential lenders as possible participants in the syndicate alongside the Development Bank of Ethiopia


- KEFI's Social Performance Team prepares, with the Government at all levels, for the community resettlement, livelihood restoration and community development programs

- Verification of the compensation claims is now being arranged to ensure regulatory compliance

- Procurement, detailed engineering and contractual documentation are being conducted in parallel with the community resettlement schedule

Gold & Minerals Ltd Joint Venture, Saudi Arabia (40%-owned by the company with KEFI as operator):

Encouraging signs from Government:

- New Energy, Industry and Mineral Resources Ministry created, to be headed by Khalid al-Falih, chairman of state oil company Saudi Aramco

- Ministry will handle oil and gas extraction, power generation and distribution, mining and industrial development

- KEFI and its partner ARTAR, through its joint venture vehicle Gold & Minerals Company Ltd, see this as a positive sign and expect new mining policy to be issued before year-end

Jibal Qutman:

- KEFI's plans for developing a heap leach gold project at the Jibal Qutman development await the outcomes of the Government policy review


- Re-commenced fieldwork, focusing on depth-measurement of large buried targets as a prelude to drilling Portfolio of Licence Applications

- Upgraded its portfolio of licence applications


- Fully discharged the inherited VAT liability and now entitled to a US$3.5 million refund

- Raised £3.8 million primarily for the scheduled development activities of the Tulu Kapi Gold Project, notably resettlement of the Tulu Kapi community and project finance syndication closure costs

- New joint broker RFC-Ambrian has been appointed

- Mark Wellesley-Wood, experienced African mining operator, joined the Board as Non-Executive Director

- Received proposals to joint list on the TSX stock exchange in Canada. This will be duly assessed and considered by Board of Directors

At 4:28pm: [LON:KEFI] KEFI Minerals PLC share price was -0.02p at 0.48p

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