KEFI said it has signed an umbrella financing agreement for the Tulu Kapi gold mine development in Ethiopia sending its share price up almost 40%.
In addition, Kefi said the Ethiopian Minister of Mines confirmed that the media reports of licence cancellation were inaccurate, that the Tulu Kapi mining licence is not cancelled and that regular progress reviews would continue so as to ensure the earliest possible project launch.
The umbrella funding structure has been designed in strict compliance with the policies and guidance of the National Bank of Ethiopia, Kefi added.
A progress review is expected at the end of July 2022 to ensure a satisfactory outcome with a target launch for the project at the start of the Ethiopian dry season in October 2022.
Harry Adams, executive chairman of KEFI, said: "The Tulu Kapi gold project has been designed to the highest international regulatory standards and has had historical investment of approximately US$80mln.
"The signing of the Umbrella Agreement is a very important step and we look forward to completing the outstanding matters that will allow for full project construction to commence in the Ethiopian dry season starting in October 2022."