KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF) said it expects to sign a $240 million debt financing deal for its Tulu Kapi gold project in Ethiopia this week, after resolving a procedural issue with one of its lending partners.
The London-listed miner said the overall plan and timetable for the project remain unchanged.
Construction work is already underway on parts of the $340 million development, which is being launched in stages as equity and debt funding are finalised.
KEFI added that it has sufficient working capital and access to undrawn facilities to cover its needs until the full financing package is completed.
Harry Anagnostaras-Adams, the company’s chairman, said the process for the project’s full launch “continues intensely on all fronts” and remains on schedule for this month and next. He said record gold prices make this “the perfect time to be launching Tulu Kapi.”
The project, which has been years in the making, is one of Ethiopia’s most advanced mining developments and is expected to produce around 140,000 ounces of gold annually once in operation.
KEFI said it would issue a further update when the debt financing is signed.