KEFI Gold and Copper (KEFI)  has been formally offered a US$240 million expanded debt facility by two co-lenders in order to allow it to proceed with development of the Tulu Kapi gold mine in Ethiopia. 

In addition, the company has assembled US$100 million of equity-risk capital at the subsidiary level. US$40 million has already been committed, while KEFI also has conditional proposals for the provision of more than the additional US$60 million that is actually required. 

This debt and equity financing combination will allow the company to meet the updated development budget for Tulu Kapi, which stands at US$340 million, a modest update on the figure first presented to the market in 2023. 

Approvals and the signing of the full project finance package is scheduled for completion in September 2025, and meetings to this effect are already taking place.

Meanwhile, field activities remain on schedule and full development is expected to begin in October 2025. KEFI, its main project contractors and the relevant Ethiopian Government agencies have signed or approved definitive project contracts that are now subject only to lender approval. 

These contracts cover plant and infrastructure construction, provision of power, new roads and a long-term mining capability.

"All work streams are progressing well, with the immediate priority being completion this month of the already in-train approval and signing process for the whole project finance package, enabling full development at Tulu Kapi,” said KEFI’s executive chairman, Harry Anagnostaras-Adams. 

"This first international project finance closing for Ethiopia results from a notably collaborative effort, which has brought together hundreds of people in many public and private organisations at Tulu Kapi, in nearby regional centres, in Addis Ababa, and across multiple locations worldwide.”

 

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Enthusiasm for the project remains high. KEFI’s share price has been hitting 12-month highs in recent weeks, and no wonder - all-in sustaining costs at Tulu Kapi are set at between US$1,000 and US$1,100 per ounce, as against a gold price that is pushing towards new records at over US$3,400 per ounce. Year one net operating cash flow is projected at around US$200 million, using a modest US$2,500 gold price assumption, and US$300 million at a US$3,500 gold price. It remains to get the project going, of course. Execution risk is not to be taken lightly. But there’s momentum, a favourable market environment, and a coming together of finance and know-how that looks like it will get a mine built.