KEFI Minerals (LON:KEFI) is on course for first gold from Tulu Kapi in Ethiopia in late 2017, chairman Harry Adams confirmed to shareholders at its annual meeting.
Appointment of banks will be the next step, he said, for US$140mln of the expected US$176mln build costs, of which US$129mln is required upfront.
The remainder of the funds will come from a gold-stream facility where headline terms have already been agreed.
In the meantime, project works are to be financed by interim draw-downs and arrangements with contractors and suppliers.
Adams added that the FEED stage (Front End Engineering Design) is now approximately 40% complete and should be finalised in February.
Initial open pit gold production is projected at 115,000 ounces per annum, at an all-in-sustaining-cost of US$724-750/oz.
Ore reserves are around one million ounces and total resources 1.7mln ounces.
Adams added it expects shortly to submit a mining permit application at Jibal Qutman Gold in Saudi Arabia for a heap-leach operation to come onstream soon after Tulu Kapi.
Results from infill drilling at Jibal Qutman for a series of shallow open pits are due soon. Kefi will use cash flow from Jibal Qutman to fund exploration of 24 other licence applications covering an area of 1,500 sq km.
“It is, indeed, pleasing that we continue on track to target profitable gold production from late 2017 and to establish a powerful platform for further discovery in a most-promising region of the world."