KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF) has begun the community resettlement process for its Tulu Kapi gold project in Ethiopia, marking a key milestone in preparations to move into full-scale development.
The AIM-listed mine developer said it would start paying compensation this month for the first phase of its action plan, with funds drawn from existing cash reserves following a recent capital raise.
The company expects to recover the outlay once it draws down on the broader project financing package.
The relocation of local residents is a precondition to construction at the Tulu Kapi site and is being carried out jointly with the Ethiopian government.
It is also guided by environmental and social standards set by the International Finance Corporation, part of the World Bank Group.
According to KEFI, this stage of the resettlement programme is slightly ahead of schedule and reflects the company’s intent to accelerate the project timeline.
Gold production at Tulu Kapi is targeted for the second half of 2027.
In an update on progress, chairman Harry Anagnostaras-Adams told investors: "Project finance continues to come together at the subsidiary level in preparation for all the parties to sign detailed definitive documentation, targeted for end-August 2025.
"At this exciting time for KEFI, we have also seen major international gold investment institutions become KEFI shareholders, including Ruffer Gold, Konwave/Gold 2000 and Phoenix Gold Fund.
"The next few weeks are expected to deliver more material milestones and enable the full launch of Tulu Kapi. I look forward to providing further updates as appropriate."
The announcement was made during the Investment in Ethiopian Mining Forum, held at the Ethiopian Embassy in London on 15 July and co-hosted by KEFI, the British Embassy in Addis Ababa, and Ethiopian officials.