KEFI Gold and Copper PLC (AIM: KEFI) has received confirmation of conditional final credit committee approval from the lead lender for its Ethiopian development project, the high-grade Tulu Kapi Gold Project.
This followed the approvals from other key syndicate members including lead contractors and lead equity parties, and the previously reported actions by the Government of Ethiopia during 2023.
Key government actions include the previously negotiated and reported exemptions from foreign exchange restrictions, commitments to provide permanent security protection, and the approval of additional protections for the lenders for the project. Also, the entire US$320M finance package is designed at the subsidiary level, with syndicate members who know the country well.
Harry Anagnostaras-Adams, executive chairman, commented, “The Ethiopian Government and the lead syndicate members of our high-grade Tulu Kapi Gold Project have been working hard to support our project launch. The government has recently made strong commitments including approving country membership (a set of protections for development finance institutions) for both of our project lenders, deregulation of exchange controls, and commitment to the preparation of security and our community. These government initiatives have played a very important supportive role in allowing the project to move forward.”
KEFI is now mobilizing into the field to prepare the community, so far having briefed church leaders and congregations, and distributed medical treatment for the victims of the recent malaria outbreak. Full project launch, including funding drawdown, is on track for H1 2024.
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