KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF) told investors it now has full board approval from both co-lending banks for its Tulu Kapi gold project in Ethiopia.
It follows prior credit committee confirmations and is subject to final updates and documentation.
The company also reported that the local community has expressed support for resettlement plans and compensation arrangements.
The total project financing stands at $240 million and KEFI expects first-year net cash flow will exceed total project finance debt.
"After a decade of preparing Tulu Kapi and overcoming various external challenges, we're pleased to have secured Tier 1 support from the Government, industry specialists, and financial institutions to initiate development,” executive chair Harry Anagnostaras-Adams said.
“This comes at a time when gold prices are at record highs, with projections indicating net cash flow surpassing the total project finance debt of $240 million in the first year alone.”
He added: "Of course, the support of the Tulu Kapi community is by far the most important foundation for our Project. Their continued support is very pleasing to witness. The community will have an important role to play in establishing Tulu Kapi as a 21st century-standard gold mine and one of Ethiopia's flagship developments."