KEFI Minerals’ (LON:KEFI) Tulu Kapi gold mine in Ethiopia remains on track for financing in mid-2016 and production by the end-2017.
Up-front costs remain at an estimated US$130mln, it said, to comprise US$60mln senior secured debt, US$30mln equity and the rest from product-linked gold finance plus a 100,000 oz hedge facility.
The detail will depend on the gold price this year, which is currently higher than originally envisaged in the original design.
Formal syndicate commitment is scheduled for mid-2016 and debt draw-down towards the end the year.
Equity contributions will be made prior to debt draw-down. The government of Ethiopia has already proposed a US$20mln equity investment.
The mine and engineering design has also been delivered on schedule, while a refinement of the resettlement plans has seen the addition of an airstrip for the local community.
John Leach, KEFI’s finance director said the completion of funding would be transformational.
“The assembly of an international financing syndicate always requires intense activity, which is especially challenging in the prevailing weak capital market conditions for the mining sector. “