KEFI Gold and Copper (KEFI) has completed the early works required to enable the full launch of construction at its Tulu Kapi gold project in Ethiopia.
Inspections by the relevant independent certifiers, security, community and site preparations are considered all in order for full project launch.
The company has also updated its finance plan and financial model, and the full financing is expected to close next month.
The project finance plan and financial model are now undergoing final review and certification for inclusion in the final definitive documentation for signing.
Subject to final approvals, the updated finance plan remains consistent with recent guidance presented at the KEFI AGM.
This specified that total development capital required is approximately US$420 million, including the mining fleet. This is expected to be funded through approximately US$110 million in contractor funding, US$240 million in bank debt, and around US$70 million in additional equity risk capital.
The required equity risk capital of approximately US$70 million includes around US$10 million which has already been spent, with the balance assembled at the subsidiary level and now being refined and finalised against the final budgets and consequential Financial Model.
Board meetings for KEFI, KME and TKGM - the joint Board of KEFI and the Ethiopian Sovereign Fund, Federal Ministry of Finance and the Oromia Regional Government - are scheduled in sequence during August 2025 for signing all documents. Other parties are expected then to proceed to countersign according to their respective board schedules.
Both co-lending banks have now approved the expanded US$240 million finance package at credit committee level. One bank has also completed board ratification, while the other is currently in the process of doing so.
All parties support achieving financial close next month.
“I extend my sincere thanks to all stakeholders for their hard work and diligence in preparing the full launch of the Tulu Kapi gold project,” said KEFI’s executive chairman Harry Anagnostaras-Adams.
“This transaction marks a first of its kind in Ethiopia, a bespoke syndicate of carefully selected parties operating within a structure designed to effectively manage risk. Each syndicate member is a leader in its field, is committing for the long term and is fulfilling its role with exemplary professionalism. I thank them on behalf of KEFI and our shareholders, who I also especially thank for their patience and support for us preparing the Project for this exciting moment.”
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The pathway that KEFI is now on has been laid out for some time, but nevertheless it’s good to see the company progressing steadily without stumbling. It’s a propitious time to be building a new gold mine, and all parties know it.