KEFI Minerals PLC (LON:KEFI) told investors that it has entered into a US$4mln secured convertible loan facility with “a longstanding institutional shareholder of the company”.
The company said that the facility will expand the company's flexibility for progressing the Tulu Kapi gold project and other operations.
It added that it will support decisions taken recently amongst the Tulu Kapi consortium to start certain high-impact tasks – including community resettlement, project development and the initial reconnaissance of an expanded district for exploration.
READ: KEFI secures agreement to resettle Tulu Kapi community
KEFI said the facility expands the company's working capital and will also complement the existing project financing plans.
The company also gave investors an operations update for the project.
“It has been a challenging year with many changes to the political landscape of the jurisdictions within which the company operates,” KEFI said.
“It is, however, refreshing that the changes during 2018 have been overwhelmingly positive and the company now stands with assets, relationships and people that provide a great platform to deliver shareholder value by developing profitable mines and exciting exploration programs in Ethiopia and Saudi Arabia.”
It added: “Over the previous two years, political changes in Ethiopia have caused some material delays and it is today pleasing to see a rapid and smooth transition to new national leadership over the past six months with widespread support in Ethiopia and what appears to be a progressive attitude to reform on various fronts.
“Throughout these recent political events, the company and its consortium for Tulu Kapi remained steadfast and took the opportunity to refine and improve project plans.”