KEFI Minerals (LON:KEFI) intends to raise more than previously indicated through bond and share issues for the construction of its Tulu Kapi gold mine in Ethiopia.
The formal mandate process for the listed infrastructure bonds has now started, though the loan funding is now expected to be US$160mln, up from US$150mln, while the amount of equity rises to US$50mln from US$40mln.
The equity element includes US$20mln already agreed with the Ethiopian government with KEFI to raise the additional US$30mln.
Harry Adams, executive chairman, said the additional US$20mln of debt and equity would provide a bigger safety buffer for contingencies and pay for an exploration programme.
Adams added that the net present value (NPV) indicated in last year’s definitive feasibility study had risen to US$192mln from US$159mln due to higher throughput via the processing plant in the early years than assumed in 2017.
Forecast production rises to 135,000oz from 115,000oz, while all-in-costs increase to US$973 per oz from US$937 per oz.
NPV also gets a boost from the expected better finance terms, said Adams.
"Independent reviews of the project plans and associated economics have been completed and re-affirm their robustness and attractiveness."