KEFI Gold & Copper (KEFI) is expecting to sign off on its US$240 million debt financing this week, following the resolution last week of a procedural matter involving one of the funding parties.
The debt package will be used to provide a substantial part of the funding for construction and development of KEFI’s Tulu Kapi gold mine in Ethiopia.
The overall process remains unchanged from the steps and schedule previously set out, with various construction projects already underway as part of the sequenced launch this month of the full US$340 million project.
Project equity capital arrangements are also advancing.
In the meantime, KEFI has unused working capital resources and undrawn facilities in place pending drawdown of full project finance.
"The process for full launch of Tulu Kapi continues intensely on all fronts with all parties, with all steps remaining scheduled for this month and next in accordance with the Tulu Kapi Project syndicate's agreed schedule,” said KEFI Executive Chairman, Harry Anagnostaras-Adams.
"With the gold price at a record high this is the perfect time to be launching Tulu Kapi.”
View from Vox
Lining up all parties in a funding syndicate is never an easy matter, especially in a jurisdiction like Ethiopia, which hasn’t had much experience of mining finance to date. So, it’s good to see the Tulu Kapi juggernaut rolling on, in spite of the occasional niggle, and it’s hard to see any syndicate member having serious qualms about coming across with the funding in the current gold price environment.