KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF) says it is making good progress with the early works programme at its Tulu Kapi mine in Ethiopia ahead of the receipt of final approval for full construction to start.
The early works programme will run through September 2024 and provide the basis for full financial close and commencement of major works in October 2024, ahead of the commissioning of production in mid-2026, according to a statement.
KEFI added that along with its banks, its executives are in regular contact with the relevant government officials to resolve the remaining few administrative issues.
An internal corporate re-organisation is being implemented to facilitate closing with regional investors and, in due course, the local stock exchange listing of securities issued to locals by the Ethiopian holding company, Tulu Kapi Gold Mines Share Company (TKGM).
Subject to the finalisation of full project financing, KEFI's current beneficial ownership of 95% in TKGM will likely be diluted to c.80% upon closing, said the statement.
Equity subscriptions into TKGM are at an entry valuation of approximately US$200 million while the NPV of TKGM equity is estimated at US$650 million based on the DFS, KEFI added.