KEFI Minerals (AIM: KEFI), has appointed and told investors it has selected African Mining Services ( AMS ) , a wholly-owned subsidiary of Ausdrill Limited, as preferred contractor for mine establishment and operation for the Tulu Kapi project in Ethiopia.
KEFI Minerals (AIM: KEFI), the gold exploration and development company with projects in the Kingdom of Saudi Arabia and the Federal Democratic Republic of Ethiopia, is pleased to provide an update on progress on the Tulu Kapi gold project in Ethiopia.
African Mining Services ( AMS ) has strong African operations and a successful track record.
The arrangement will cover certain pre-mining earthworks as well as the life-of-mine open pit operation, though Kefi will remain directly responsible for key input costs such as explosives and fuel.
The next step is for KEFI and AMS to jointly optimise the detailed operating plan for the benefit of the project and to prepare matching detailed contractual documentation.
The provisions for cost overrun and finance charges will be checked and allocated between the funding/contracting syndicate as part of finalising inter-creditor arrangements.
The provisions for cost overrun and finance charges will be checked and allocated between the funding/contracting syndicate as part of finalising inter-creditor arrangements.
Wayne Nicoletto, chief operating officer of KEFI Minerals, commented: “Today’s appointment of industry stalwart Ausdrill/AMS as preferred mining contractor is a profoundly important step forward in setting up Tulu Kapi gold project in Ethiopia both for development and for long term operation.
Meanwhile, executive chairman Harry Anagnostaras-Adams says Kefi is looking forward to starting work on the ground.
"KEFI was privileged to have received bids from many prominent industry specialists, all of whom invested much effort into their proposals,” he said.
“We are pleased to have joined forces with Ausdrill and its long-standing African subsidiary, AMS, which have a record second to none.”
Kefi also confirmed financial projections for the mine such as all-in-sustaining costs of US$760 per ounce, a US$120mln peak funding requirement – with US$100mln to be sourced from debt and gold streaming, along with US$20mln of project-level equity. It is planned that Tulu Kapi will produce 100,000 ounces per year
Sorce : KEFI Minerals
"KEFI was privileged to have received bids from many prominent industry specialists, all of whom invested much effort into their proposals,” he said.
“We are pleased to have joined forces with Ausdrill and its long-standing African subsidiary, AMS, which have a record second to none.”
Kefi also confirmed financial projections for the mine such as all-in-sustaining costs of US$760 per ounce, a US$120mln peak funding requirement – with US$100mln to be sourced from debt and gold streaming, along with US$20mln of project-level equity. It is planned that Tulu Kapi will produce 100,000 ounces per year
Sorce : KEFI Minerals
