KEFI Minerals (LON:KEFI) this morning confirmed it is on course to update the definitive feasibility study for the flagship Tulu Kapi project in Ethiopia this month and expects to have concluded the full financing for the planned gold mine next quarter.
Capital costs are put at a relatively modest US$120mln for a contract-based operation that will produce 960,000 ounces of the precious metal over 13 years and at an all-in cost of US$783 an ounce.
KEFI said it is hoping to raise US$100mln of debt for the operation, which has a net present value of US$112mln (assuming a gold price of U$1,250 an ounce and an 8% discount rate).
Construction is expected to begin late this year and will take around 12 months, with gold production commencing early 2017.
Chairman Harry Anagnostaras-Adams told investors: "We are pleased with the progress that KEFI has made in the first five months of 2015.
“The updated definitive feasibility study is nearing completion and preparations for the full funding required for project development are also on schedule.”