KEFI (AIM: KEFI) finalised the costings and finance plan by all the Tulu Kapi syndicate lead contractors, investors, and lenders for the updated US$320M Tulu Kapi Gold Project in Ethiopia.
The agreement is currently being processed for final reviews and entry into definitive documentation to be signed as soon as possible, with the expectation to achieve this next month.
It remains that financing is to be almost entirely at the project or subsidiary level and remains consistent with previous guidance. The detailed breakdown of the sources and uses of the US$320M project funding will be announced at the time of signing definitive documentation.
“The Tulu Kapi Gold Project is designed to world-leading standards technically, socially, environmentally and in terms of financing arrangements acceptable to international capital markets,” Harry Anagnostaras-Adams, Executive Chairman of KEFI, said.
“Today’s important milestone of the debt and equity leads approving the finalised finance plan allows all the respective Boards to formally approve the definitive documentation. I am pleased to report the project is now up and away.
“Ethiopia’s readiness for foreign direct investment has continued to improve since early 2022 and recent well-publicised positive developments have only served to reinforce that. The company is confident that we can lift the work programmes to full construction in the new year and be in full production from the open pit in 2025 and from the combined open pit-underground operation a few years later.
“We have been long-standing and resilient supporters of the Ethiopian Government’s efforts to develop its minerals sector and we feel a great sense of responsibility and honour to now be able to push forward at a time which is particularly important for all stakeholders.”
Tulu Kapi Background
Tulu Kapi development plans now contemplate an enlarged Tulu Kapi operation, integrating both an open pit and underground mine, with consequential increases in planned gold exports to US$300M per annum (at current gold prices when both mines are in production) and with combined mine production extended from eight to 10 years starting in 2025.
KEFI will also request permission from the Ethiopian Ministry of Mines to recommence district exploration during construction to further extend the mine life to well over 10 years for the benefit of all stakeholders.
Initial Project development activities have already started and include camp upgrading for construction, local recruitment, community resettlement, plant procurement engineering, and work-programmes and legal formalities to satisfy the many standard conditions precedent for finance drawdowns. An official project launch is planned for early 2023, the timing to be determined with the Ministry of Mines.
For further information please visit: https://www.kefi-minerals.com/
