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Mines Ministry Gives Go Ahead For Tulu Kapi Development

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Aim-listed gold explorer and developer Kefi Minerals has received approval from Ethiopia’s Ministry of Mines to develop its Tulu Kapi project.

The company's application for the 86 000-oz/y mine was now before the Council of Ministers for approval to execute a mining agreement and to issue the mining licence and full permitting to develop and operate the project for 20 years.

Further, Kefi Minerals on Monday said the estimated development expenditure for the mine had been reduced from $150-million to $120-million, based on initial bids received from mining contractors and on terms on offer to the company for the acquisition of the identified suitable process plants.

The development funding plan would be a combination of debt and equity finance, drawn down in the second half of this year and comprising $100-million of project debt, with the balance of $20-million being financed by one of a number of possible sources currently being assembled, including financing from contractors and equity at the project or parent company level.