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ReGIonAL RoUnD-UP

Kefi closes in on project start

efi Gold and Copper plc finds itself closer “The full funding syndicate is doing detailed government. Tulu Kapi has a strong sincere
K than ever to realising its development ob- documents for execution in a month, for funds sense of belonging to Ethiopia.” Anagnostaras-
jectives in Ethiopia despite the ongoing political flow and full project launch in following month, Adams said.
tensions in the country. coinciding with end of wet season,” Anagnost- The end result is a project the company be-
AIM-listed Kefi has been in Ethiopia since aras-Adams said. lieves will become a flagship for Ethiopia.
2014, diligently building the investment case for Kefi has seen financiers walk away from “Tulu Kapi has been a front-runner – and the
its Tulu Kapi gold project, 360km west of Ad- Tulu Kapi before but said he had full confi- crash test dummy – for Ethiopian mining and
dis Ababa. And despite several financing and dence in the current syndicate which included now we are keen to get the show on the road,”
political setbacks, executive chairman Harry groups deeply attuned to risk profiles in Africa. Anagnostaras-Adams said.
Anagnostaras-Adams remains convinced the “Previous financiers were perhaps a bit timid Kefi Minerals (Ethiopia) chairman Dr Ke-
company is on the verge of success. but this syndicate is quite bespoke for Ethiopia; bede Belete was recently elected chairman
“The main inflection point is closing financ- they understand the landscape and have an of a new industry association which has been
ing and starting construction,” he told Paydirt. appetite for Africa,” Anagnostaras-Adams tasked to attract new investment to the sector.
“It will take a month or so to complete the docu- said. Anagnostaras-Adams said the returning
mentation and then we will be ready to close. Among the syndicate is Australian engineer- Government recognised the potential of the
We were a junior explorer with a market cap ing house Lycopodium Ltd and Corica Mining country’s mineral endowment.
of less than $10 million two years “A reformist Government was re-
ago but now we are valued at $80 elected in June 2021 to continue the
million and all the benchmarks say country’s hard drive for growth and
that on financial closing that value a broader sharing of benefits,” he
will double or triple.” said. “The Ministry of Mines & Pe-
The company’s journey has troleum is kick-starting the industry.
been a colourful one with the last It has been the tough guy with a cat-
12 months blighted by regional tle prodder to get some action kick-
conflict, resulting from national started. Many licences have been
elections in June. Anagnostaras- cancelled and many other industry
Adams’ belief in the future of his players have bruises. This is the
company remains unshaken. largest potential export sector and is
“Kefi has been in Ethiopia for today untapped.”
seven years and it has been a Kefi has recently been joined by
changing political landscape the juniors such as ASX-listed Megado
whole time,” he told Paydirt. Kefi is nearing the start of construction on its 1.7 moz gold Tulu Kapi Gold Ltd, TSXV-listed East African
“There is more to traverse again project in Ethiopia Metals Inc, Allied Gold Corp and
but we never put people or capital Sunpeak Metals Corp and US giant
at risk. Ethiopia has been in the world’s top 10 Services from Mali, alongside the East African Newmont Corp.
growth countries for going on 20 years straight Trade and Development Bank, the African Fi- Anagnostaras-Adams expects more com-
and that continues, the minerals opportunity is nance Corporate and what Anagnostaras-Ad- panies to follow.
huge and the top Government leadership is ams described as “local subsidiaries of several “East Africa’s potential still hasn’t really been
the best I have ever dealt with – despite what multinationals.” tested,” he said. “In many ways it has the same
you read in some of the media.” The financial due diligence process has opportunities West Africa had 20 years ago.”
In June 2020, the company released an up- been intense enough to fully stress-test the Security and political stability remain a con-
date to its 2015 DFS which reduced capex for Tulu Kapi model according to Anagnostaras- cern to many investors, particularly given the
Tulu Kapi’s development from $US242 million Adams. violence in Tigray province in recent months.
to $US221 million. The mine will now be an “There has been an incredible amount of Anagnostaras-Adams said the troubles
eight-year operation, processing 1.9-2.1 mtpa due diligence on the project because this is were worrying but had little impact on Kefi.
at 2.1 g/t gold for annual steady-state produc- the first project here in 30 years,” he said. “It “Everyone is very mindful of the security is-
tion of 140,000 ozpa at $US856/oz AISC. has been very rigorous on technical and ESG sues given the highly publicised conflict in Tig-
The company has also refined its under- aspects. It took us 18 months to work through ray, in Ethiopia’s north,” he said. “But that is a
standing of underground resources, paving the the due diligence process whereas in a mature bit like worrying about conflict in Belfast if you
way for a separate feasibility study next year. jurisdiction that may have taken six months.” were living in London in the 1980s.
“We are also doing a lot of desktop work on As well as satisfying financiers, Kefi has had “Everyone is very mindful of the security is-
the underground which we believe will comple- to partner with the Ethiopian Government to sues given the highly publicised conflict in Tig-
ment the open pit,” Anagnostaras-Adams said. ensure the regulatory environment meets in- ray, in Ethiopia’s north. But that is a bit like wor-
“It has grades of 5-7 g/t gold so will provide a ternational requirements. rying about conflict in Belfast if you were living
good opportunity to blend with the open pit ma- “Because there has never been a project in London in the 1980s.
terial if we develop them one immediately after like this for 30 years, we have had to align the “Kefi has elevated its precautions with offi-
the other. The plan is to trigger that once the government bureaucratic processes with the cial support, to protect KEFI-Government Pro-
open pit has started production.” modern world and make sure they all adhere ject plan which targets to commence full devel-
On the financing front, Kefi was preparing to IFC standards,” Anagnostaras-Adams said. opment as soon as possible after the elections
final documentation with a syndicate of inves- “Several local shareholders are involved, in Ethiopia.
tors over the course of August and September. from grassroots level to regional and federal – Dominic Piper

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