Kefi Gold and Copper PLC shares jumped by a quarter as the company received the final clearances to start work on its Tulu Kapi gold mine in Ethiopia.
Formal confirmation has been received from the National Bank of Ethiopia for the operation of offshore banking by the mine's operating company and its project finance banks.
“This clarifies the operational details for the implementation of the policies set out in the recently published National Bank of Ethiopia Directives, waiving strategic mining projects from foreign exchange control and capital controls,” Kefi said.
“Tulu Kapi is now finally fully permitted with only procedural administrative confirmations remaining,” Kefi added.
Project finance banks can now proceed to final credit approval for the US$190 million secured debt package.
“Upon approval, the project's detailed debt terms will have been resolved, as will the structure of the overall US$390 million finance plan (secured debt component of US$190 million, equity-risk capital of US$130 million and contractor supply of mining equipment of US$70 million).”
This is considered the pivotal formal step, said Kefi, which added it expects the full project launch to commence in the current quarter as previously advised.
Bank credit approval will allow formal Board approvals to proceed for the equity component and, subject to final confirmations, all project funding will have been secured.
Shares rose 22% to 0.8p.