KEFI Minerals (LON:KEFI) is finishing 2015 in a strong position, according to executive chairman Harry Anagnostaras-Adams.
The junior mining company, which released a fourth quarter update today, says it is on track for the first draw-down on its project finance for the Tulu Kapi project, in Ethiopia, by mid-2016.
It will see the gold mine start-up in 2017.
In December, the focus has been on finalising the financing arrangements.
KEFI assembled a syndicate of lenders, selecting its preferred banks and has been working to finalise mandates for formal approval. It said the finance plan has been refined to protect the project against fluctuations in the gold price.
A project management team was hired in the month. And it released refinements to the project’s definitive feasibility study – which sees 980,000 ounces of gold produced in the mine’s first eight years, at an average rate of 115,000 ounces per year.
Previously, in November, the Government of Ethiopia confirmed an intention to invest between US$15mln and US$20mln. And before that, in October, the company had confirmed finalised cost estimates for the project and appointed contractors.
"This has been another active quarter for KEFI, which rounds off a very successful year,” Harry Anagnostaras-Adams said.
“At our fully-permitted Tulu Kapi gold project, we have assembled a first-class syndicate of backers for our robust project, which remains scheduled to start production in 2017.
"In Saudi Arabia, we have completed the Mining Licence Application for the Jibal Qutman gold project, which is scheduled to commence development in 2017 and fund an ambitious growth agenda in an under-explored province.
"As a result, we finished the year in a strong position and eagerly look forward to reporting further progress in 2016."