KEFI Minerals bought the remaining 25 percent Nyota Minerals Limited ownes in the Tulu Kapi Gold Mine Oromia State, Ethiopia.

The transaction between the London based, KEFI, and dual listed on London and Australia stock exchanges, Nyota, took place on Wednesday, September 24, 2014.

It was in December 2013 KEFI acquired 75 percent of the Tulu Kapi mine from Nyota for 4.5 Million Pounds.
On the other hand, the current deal is made for 750,000 Pounds and 50 Million shares on KEFI.

According to The Reporter, KEFI Minerals claims Tulu Kapi Gold Mine has a proven reserve of one million ounces of gold. The total mineral resource is estimated at 2.05 Million Ounces.

In addition to this the newspaper noted Nyota has license for the gold exploration at what is called Northern Block. It is also seeking to tap into the placer gold deposits along the Nile River (Abay River) near the Grand Ethiopian Renaissance Dam.

According to Nyota’s Definitive Feasibility Study (DFS), the gold exploration and development company estimated the expenditure required to build the processing plant to be U.S $ 290 Million. The plant is planned to have an annual capacity of processing 85,000 Ounces of gold ore.

KEFI is going to revise the DFS intending to increase the gold production and reduce the capital expenditure to US $ 143 Million. The revised DFS is expected to be finalized at the end of this year and construction of the processing plant will commence in 2015.

The Tulu Kapi exploration license covers an area of 200 Square Kilometers. The Ethiopian Government will retain five percent free share on the mine.

Source: The Reporter