- Gold exploration and development company KEFI Minerals issued its quarterly operational update for the period from 1 January 2019 to 31 March 2019.



- Dr Abiy Ahmed, Prime Minister of Ethiopia, issued the remaining instructions for the project go-ahead as announced on 5 March 2019

- The Ethiopian Federal Government approved the resettlement plan and the local government approved the compensation calculations. The regional government begun triggering consecutive steps of the resettlement programme in consultation with the community and TKGM. The current focus is on the selection of individual land-parcels, house locations and training. This is expected to lead to compensation payments in July 2019 for the Phase 1 move of some 60 households, with the preparations being completed in the meantime

- The Federal Government consents were all received from relevant federal agencies other than some final aspects of the Project finance structure which has now been endorsed by the Prime Ministry. Details are being documented with the central bank which has issued approvals for capital ratios, hedging and bank accounts and we expect residual matters to be resolved shortly.


TKGM project development funding:

- Project equity of $58m (Ethiopian Birr equivalent) has been committed from:

- Ethiopian government project equity of $20m (Ethiopian Birr equivalent), as detailed in the announcement of 25 January 2019; and

- Ethiopian private sector partner ANS Mining Share (ANS) equity of $38m (Ethiopian Birr equivalent): injection of the first equity instalment of $11.4m will be upon satisfaction of certain conditions, as detailed in the announcement of 8 April 2019

- The plan will result in KEFI holding 81% of KME which will hold 59% of KGM. KEFI beneficial interest in TKGM thus being 45%

- These project equity figures ignore past investment of c.$60m

- The mandated $160m bond issue preparations continue


- Principal on-site project contractors Lycopodium and Ausdrill re-affirmed the 24-month development schedule and the 18-months thereof that commences in Q4 2019, after the wet season and phase one community resettlement. In the meantime, various engineering and contractual tasks are in process including detailed scheduling and updating of front end engineering and design

- Principal off-site project contractors Ethiopian Electrical Power and Ethiopian Roads Authority had budget approvals for their works and are preparing their sub-contractor tender documents for off-site infrastructure. Their work started because their deadlines are of a critical path nature to allow plant commissioning to commence in Q4 2021

- The preferred transport contractor is finalising route surveys for deliveries

At 9:02am: [LON:KEFI] KEFI Minerals PLC share price was +0.06p at 1.73p

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