KEFI Minerals plc (LON:KEFI) saw its shares surge higher on Monday after the explorer said it has raised US$30mln from the sale of a stake in its local Ethiopian subsidiary, to complete the funding requirements for the construction of the Tulu Kapi gold mine.
“KEFI has now assembled the proposed full project funding consortium, including contractors, equity and non-equity capital and is expected to move towards full financial close later this year by closing out the remaining Ethiopian government processes and approvals, along with completion of due diligence and formal documentation,” said KEFI’s chairman Harry Anagnostaras-Adams.
WATCH: KEFI Minerals busy on three fronts in 2018 across Ethiopia and Saudi Arabia
Broadly speaking, the new consortium is coming in on the same terms as the Ethiopian government, and gives a combined 46% of the project equity to a combination of the Ethiopian government and local investors.
"KEFI's remaining 54% beneficial interest in the project, along the lines previously foreshadowed, gives the company an implied valuation of US$66 million based on these transaction metrics, whilst not including any value for the Tulu Kapi underground deposit or the exploration prospects in Ethiopia and Saudi Arabia, the largest countries within the highly prospective Arabian Nubian Shield where KEFI is focused,” added Anagnostaras-Adams.
In early morning trading, KEFI shares were 53.6% higher at 4.3p.
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