KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF) told investors that the Tulu Kapi project in Ethiopia is ‘proceeding as anticipated’, with a key financing milestone due in the coming weeks.
Credit committee approval has been granted by both of its lending banks, and the remaining procedural steps are expected to be completed by 31 March.
A parliamentary greenlight is also anticipated soon (it’s required for one of the two lenders); meanwhile, the admin checklist and site preparations are progressing.
An equity raise, at the subsidiary level, remains on schedule, with the government’s investment proceeding as planned, whilst the $240 million project finance package is advancing to the preparation of definitive terms.
"The Tulu Kapi Gold Project is proceeding as anticipated, with the approvals received from banks and widespread Government support, and for detailed documentation to be ready 31 March 2025, to trigger full launch as soon as possible thereafter,” executive chair Harry Anagnostaras-Adams said in a statement.
"We are accordingly now triggering launch steps with community, contractors and financiers.
"It is fortuitous that current timing coincides with gold being at record highs, the recent floating of the local Ethiopian currency and the consequential investor interest in protection against further devaluation with the sharp resurgence of economic growth in Ethiopia and the inception of major economic reforms including the recent launch of Ethiopian Securities Exchange.”
The KEFI boss added: “This is a powerful syndicate for the Project's long-term protection and optimisation.
“We are now confident that all external factors support our plan to assemble all definitive documentation by 31 March, and to then expedite drawdowns and major works."