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KEFI provides finance update for its Tulu Kapi Gold project

Published by , Editorial Assistant
Global Mining Review,


KEFI, the gold exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, has provided an update following the company’s announcement on 21 November 2022 in which it reported that the finance plan for the US$320 million financing of the Tulu Kapi Gold project had been agreed in principle by the lenders so that draft definitive agreements could be finalised for approval by syndicate members and regulators.

The company has reported that all lead contracting and equity investment parties have agreed their draft agreements and confirmed their intention to sign. Likewise, for nearly all Government agencies which have to also sign agreements within the syndicate.

For their part, the lenders have re-affirmed the financing plan in principle and have formally set out their indicative terms and conditions which include, as expected, satisfaction by all parties of their respective conditions and the receipt of all the necessary remaining Ethiopian Government approvals. To this end, during the last months of 2022, the various relevant regulatory agencies were advised of the specific conditions and clarifications required from them in order that progress can be made with the financing and definitive documentation signed.

Whilst the Government is clarifying the outstanding regulatory matters, it is also reorganising its systems around the project, including for upgraded security and for preparing the community for resettlement.

Following the completion of these steps, and the receipt of final credit committee approval by the lenders, KEFI will call a general meeting of KEFI shareholders to seek formal shareholder approval of the transaction, in particular any convertibility rights (into KEFI shares) embedded in the financings at the KME level by regional investors as previously outlined.

The company expects all outstanding issues to be addressed imminently, the exact timing of which will largely be driven by the Government process, so that final lender documentation can be completed, and signing can take place, enabling the KEFI general meeting to be called, funds to flow and full project launch to proceed.

The company and the full syndicate remain focused on achieving full project launch as soon as practicable. KEFI remains focused on achieving full production from the open pit operations in 2025 and from the combined open pit-underground operation a few years later for combined gold exports of near 200 000 oz/yr (KEFI beneficial interest 80% or near 160 000 oz/yr).

Executive Chairman, Harry Anagnostaras-Adams:

“The Board is very proud of the teams in Ethiopia and in Saudi Arabia. It has taken a huge effort over a much longer period than we had anticipated in both countries to deal with innumerable frontier market (for mining) challenges and we greatly appreciate the patience and support of all stakeholders and, in particular, of our host governments and communities, our partners and of course our financiers and shareholders.

“Ethiopia’s first modern mining development will include our large Tulu Kapi project which today would be the largest single export-generator for the country. We are looking forward to working with the newly appointed Minister for Mines, H.E. Habtamu Tegegn who was already supporting the project from his previous role as head of the Ethiopian Roads Authority.

“In the Kingdom of Saudi Arabia, after some fourteen years of patient ground-work, the rate of our progress there has taken off at a remarkable pace – with our two advanced projects being at the forefront of ambitious minerals development plans in that country which are being vigorously supported by the Government locally and have been just recently recognised internationally.”

Read the article online at: https://www.globalminingreview.com/mining/23012023/kefi-provides-finance-update-for-its-tulu-kapi-gold-project/

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