AIM-listed KEFI Gold and Copper has confirmed that all final documentation for a $240-million loan facility supporting the Tulu Kapi gold project is now fully executed. This follows an announcement made in October last year and the subsequent arrangement of $100-million in equity funding.
“It is all systems go in Ethiopia. I am pleased to confirm that the banking syndicate has signed binding final documentation for the agreed $240-million debt financing,” stated KEFI founder and Executive Chairperson Harry Anagnostaras-Adams.
The remaining $100-million equity-risk capital, which comprises $30-million from subordinated streams and royalties and $20-million from Ethiopian preference shares, is currently undergoing final documentation processes. The signing of the comprehensive final funding package remains scheduled for February.
KEFI is also considering additional non-dilutive offerings at either the plc or asset level, totalling $36-million, with the aim of strengthening cash reserves and supporting exploration and social programs.
Following the placement of $20-million in December last year—completing the equity funding required for project commencement—a range of works have already started or progressed this month. These include initiating compensation payments for the first phase of community resettlement, commencing land clearing for resettles housing construction, mobilizing the plant construction contractor who is now focused on procurement, and beginning electricity transmission upgrades at the zonal centre in Ghimbi for connection to Tulu Kapi.
Project operations will continue to advance over the coming weeks, aligned with the finalization of the financial close.
“We are delighted to be moving towards full financial close and drawdown of funding at a time when the gold price is trading above $4,700/oz and Ethiopia is experiencing significant private sector-led growth,” Anagnostaras-Adams added.
