KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF) has said preparations to launch its flagship gold project in Ethiopia are progressing on multiple fronts with final contracts expected to be signed by the end of the current quarter.
The London-listed miner is advancing plans to begin construction at the Tulu Kapi site, including resettlement of local communities, infrastructure work and formal approvals from the Ethiopian authorities.
It said all contractors involved had been asked to prepare for a formal start from the end of the quarter.
Initial site facilities are already under construction, including camps and water supply for security and construction teams. Meanwhile, resettlement surveys covering around 350 properties are under review, with compensation and relocation to follow in line with Ethiopian law and World Bank standards.
The company is also finalising updated tender pricing for mining services and is waiting on the ratification of certain government approvals, including confirmation of the African Finance Corporation’s membership in the project, which must pass through Ethiopia’s parliament.
Independent certifications covering construction, security and community commitments are expected to be completed in the coming weeks. KEFI said operational leadership was being installed at the project company, Tulu Kapi Gold Mines, with two senior appointments from the African and Central Asian mining sectors.
The group estimates a capital requirement of around US$300 million to fund the development, net of what has already been spent and what is being covered directly by contractors.
It is aiming to raise US$240 million in debt from secured lenders and a further US$60 million through either new local equity or the partial sale of assets in Saudi Arabia.
One option under consideration is to issue preference shares in a new Ethiopian holding company, with a future listing on the Ethiopian Securities Exchange. KEFI is also in talks to sell a 15% stake in its joint venture in Saudi Arabia, known as GMCO.
Shortlisted investors are reviewing the definitive feasibility study for the Jibal Qutman project, where a key step (securing a local water supply) was recently completed.
The company said further development plans for Jibal Qutman would be agreed upon with shareholders, funders and regulators in due course.
Chairman Harry Anagnostaras-Adams said: "The preparations for full launch of Tulu Kapi Gold Project are advancing across all fronts for signing this quarter of the assembled detailed definitive documentation. The economic metrics continue to improve and the stakeholder support is across-the-board."