KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF) has confirmed the full launch of its Tulu Kapi Gold Project after assembling a US$340 million package of debt and equity funding.
The mine developer announced the funding that includes US$240 million in long-term project debt and US$100 million in equity-risk capital, to enables the start of development activities - covering initial project and financing costs.
As part of the funding process, KEFI raised around £6.1 million in cash through a placing at 1.3 pence per share and also settled approximately £8.9 million of outstanding working capital liabilities through the issue of new shares under a subscription.
Alongside the placing, KEFI opened a retail offer via RetailBook to allow UK retail investors to participate in the fundraise. The RetailBook offer closed having raised £0.77 million through the issue of 59.56 million new shares, taking total gross placing fundraise proceeds to about £6.9 million.
KEFI also provided an update on project-level funding, confirming it has signed a term sheet for US$30 million of equity-ranking gold stream financing. Completion of this funding remains subject to final documentation and approval from senior lenders and will form part of the project’s equity-risk capital .
Executive chairman Harry Anagnostaras-Adams said the assembly of the funding package marked a key milestone for the company and the project. He added that KEFI is now aligned with government, lenders and investors as it moves into the development phase.
"We now trigger KEFI's development chapter in Ethiopia for commissioning first production in 2027 and full production as from 2028. We will concurrently advance our large pipeline of projects which advance at various stages. A string of milestones lies ahead on that score, which we will set out shortly," Adams said in a statement.