- Emerging gold producer KEFI Minerals said Monday an Ethiopian investment syndicate struck an agreement to acquire a 30% stake in the company's Tulu Kapi Gold project for $30m.

Following closing of project finance, the Ethiopian government would own a about 23% of the Tulu Kapi gold project, while 77% would be owned by KEFI's wholly-owned subsidiary KEFI Minerals (Ethiopia) Limited, or KME.

Under the proposed terms, which remained subject to final documentation and government approval, the syndicate would invest US$30m in local currency (Birr) equivalent of which $9m would be invested in August 2018 and the balance upon closing of project finance.

'We are delighted to have agreed terms with the Ethiopian investment syndicate, which further strengthens our alignment with local stakeholders for our Tulu Kapi project. Their investment on roughly the same terms as the Ethiopian Government means that c.46% of the Project equity will now be held by the Ethiopian Government and local investors to complement the other benefits,' said Harry Adams, Chairman of KEFI Minerals.

'KEFI's remaining c.54% beneficial interest in the Project, along the lines previously foreshadowed, gives the Company an implied valuation of US$66 million based on these transaction metrics, whilst not including any value for the Tulu Kapi underground deposit or the exploration prospects in Ethiopia and Saudi Arabia, the largest countries within the highly prospective Arabian Nubian Shield where KEFI is focused.'

At 8:00am: [LON:KEFI] KEFI Minerals PLC share price was +0.28p at 3.08p

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