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, announces that the previously preferred Engineering, Procurement and Construction (“EPC”) contractor has been replaced with marke tleader Lycopodium Ltd resulting in better proposed financial terms and an unchanged timetable.

Mr Harry Anagnostaras-Adams, Executive Chairman, said: “The Board is always mindful of costs and continues to look for every opportunity to de-risk the Tulu Kapi project whilst keeping the project on track. We are fortunate that Lycopodium’s proposal not only makes the financial terms better but they have committed to adhere to the current timetable. They have an excellent track record in building gold plants in Africa and their appointment is welcomed by the other syndicate members.”

Lycopodium is the clear market leader for taking this project to the next stage, with a track record of success in building gold plants in many African countries for over 20 years, and also in its home country, Australia, and elsewhere. Its terms of engagement as the preferred EPC contractor are reflected within KEFI’s most recently reported cost estimates for construction of the processing facilities (see announcement of 2 June 2016). Lycopodium has started work, within the previously-outlined project timetable, and is on track for construction to start Q4-16.

It is KEFI’s and Lycopodium’s intention that Lycopodium become a shareholder in the Company alongside Ausdrill Ltd, which is the mining contractor through its subsidiary African Mining Services. Subject to full legal documentation and completion of the finance syndication, both of these major project contractors would then stand with significant shareholdings in KEFI of under 10% each. Lycopodium has granted KEFI the discretion to pay for the first US$2.5 million of its programme of works in KEFI shares, at market price.

Source: KEFI Minerals Press Release