Shares in KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF) jumped 19% on Monday after the company said it expects to finalise a $240 million debt financing package for its Tulu Kapi gold project in Ethiopia this week.
The long-awaited deal, delayed briefly by a procedural issue with one of KEFI’s lending partners, is a major milestone for the £340 million development, one of Ethiopia’s most advanced mining projects.
The company said construction work is already underway on parts of the site as equity and debt funding are put in place.
KEFI added that it has sufficient working capital and access to undrawn facilities to meet its needs until the full financing package is complete. Once operational, Tulu Kapi is expected to produce about 140,000 ounces of gold each year.
Harry Anagnostaras-Adams, KEFI’s executive chairman, said the project’s launch “continues intensely on all fronts” and remains on schedule. He added that record gold prices made it “the perfect time to be launching Tulu Kapi.”
The project has been in development for several years and is regarded as a key step in revitalising Ethiopia’s mining sector. KEFI said it plans to provide a further update once the debt deal is signed.
The shares rose 0.23p to 1.44p.