JOHANNESBURG (miningweekly.com) – Aim-listed gold development company Kefi Minerals has appointed Australian firm Lycopodium as the preferred engineering, procurement and construction (EPC) contractor to build the process plant for the Tulu Kapi mine, in Ethiopia.
Lycopodium would replace the previously announced preferred EPC contractor Sedgman.
Kefi on Tuesday said Lycopodium’s proposal offered better financial terms and an unchanged timetable, with construction of the plant still on track to start in the fourth quarter of this year.
“The board is always mindful of costs and continues to look for every opportunity to derisk the Tulu Kapi project, while 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,” commented Kefi chairperson Harry Anagnostaras-Adams.
Lycopodium was expected to become a shareholder in Kefi, alongside Ausdrill, the mining contractor for Tulu Kapi.
Subject to full legal documentation and completion of the finance syndication, each of the two contractors could gain a less than 10% shareholding in Kefi.
Lycopodium had also given Kefi the option to pay for the first $2.5-million of the plant construction programme of works in Kefi shares.
Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
EMAIL THIS ARTICLE SAVE THIS ARTICLE
To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
