Modern Mining March 2016

MINING News

Kombat Copper signs agreement with EBM Mining operating costs directly. To maintain control, Kombat Copper will collect the proceeds from the sale of materials and then pay EBM its contracting fee.

extremely pleased to have finalised this landmark agreement with EBM Mining Namibia. Kombat will now be able to realise its goal of restarting operations at the Kombat mine with an experienced and respected contractor. This relation- ship is expected to not only support the company with a steady stream of cash, but it is also a great win for the local economy as we anticipate an increase in trade with our local merchants in the town and surrounding areas.” 

Kombat Copper Inc, which is listed on theTSX-V and owns the Kombat copper mine in northern Namibia, has signed a definitive agreement with EBMMining Namibia to carry out develop- ment and mining of lead/copper mineralsation at Kombat while also commencing the refur- bishment of the mine infrastructure and production facilities. Production is expected to commence within the year. EBM will begin operations in the Kombat East and Kombat Central areas of the Kombat mine for a three-year term. Kombat Copper’s core areas of Kombat West, Asis West and Asis Far West are excluded. EBM will also focus on the lead-enriched Gross Otavi deposit located 12 km to the west of Kombat. EBM has committed to mak ing an investment to refurbish certain necessary com- ponents and infrastructure, which will benefit Kombat Copper in the future. Kombat Copper will have the right to acquire all the installed components and infrastructure at the end of the three-year contract for a nominal N$1 and does not have to invest any capital up front. Profits will be split equally between Kombat Copper and EBM. Kombat Copper has agreed to reimburse up to 50 % of EBM’s capital invest- ment from 50 % of its profit share. EBMwill pay Positive PEA on Tulu Kapi gold project AIM-listed KEFI Minerals, which is developing the Tulu Kapi gold project in western Ethiopia, reports positive results from its Preliminary Economic Assessment (PEA) of the under- ground mining potential underneath the planned open pit. KEFI anticipates starting development of the underground mine after Tulu Kapi has begun generating positive cash flows from the open-pit mine and repaying its development finance, with a view to introducing under- ground production around the third year of the open-pit operation. The PEA indicates that the total produc- tion of Tulu Kapi (combining the open-pit mine and underground mine) could approxi- mate 150 000 oz/a. This production capacity would result in aggregate net operating cash flow of around US$100 million per annum with KEFI’s share of the estimated project NPV being US$150 million, assuming a gold price of US$1 250/oz and an 8 % discount rate. 

EBM will source local skilled and non-skilled labour and will utilise local suppliers and contractors, whenever possible, from the Kombat region. In its role as contractor, EBMwill be managing the hiring process to support operations. Paul Bozoki, President and CEO of Kombat Copper, commented: “We are

March 2016  MODERN MINING  17