KEFI set to seal $221m funding for Tulu Kapi Gold Project

KEFI Gold and Copper has announced that it has assembled the full consortium and set the conditional terms for the independently reviewed development funding package of about $221 million for its Tulu Kapi Gold Project, in Ethiopia.

KEFI's beneficial project ownership is expected to increase to c.65% from the previously envisaged 45%, increasing Net Project Value attributable to KEFI by c.33%.

The company has entered into two non-binding term sheets for a combined minimum of $40 million of investment with the Ethiopian division of a global industrial company, and "one of the world's leading commodity trading companies". 

The Project finance structure now comprises KEFI’s Government Partners (both the Federal Government of Ethiopia and the Regional Government of Oromia); the Eastern and Southern African Trade and Development Bank and Africa Finance Corporation as Mandated Senior Project Lenders; strong African specialist investors into KEFI Group companies (the Local Investor and Mining Financier); and the African-experienced principal contractors. RAB Capital, KEFI’s largest single shareholder holding approximately 12%, has also welcomed the new parties to the consortium, and the proposed appointments of new directors to the boards of the respective KEFI subsidiary companies

First production remains on track for Q4 2022, targeting to lift average gold production from original 140,000oz p.a. to 190,000oz p.a. within three years of start-up.