Board-approved US$240m debt, equity close to signing; contracts aligned to equity drawdown as site works advance.
Schedule Confirmed
KEFI Gold and Copper has reaffirmed that full development of the Tulu Kapi Gold Project in Ethiopia remains on schedule to begin in October 2025. In its interim results, executive chair Harry Anagnostaras-Adams said: “Significant progress was made in the period and KEFI is on schedule to begin the full development program of Tulu Kapi. We have approved and expect to sign shortly the formal commitment of the project loan facilities.”
He added: “The boards of both co-lending banks and of the Group companies have approved and are expected to sign the formal commitment of the project loan facilities within the coming week.”
Funding Package: Debt and Equity
The capital budget is cited at US$340 million, supported by a US$240 million project debt facility from two co-lenders. The remaining c.US$100 million in equity risk capital is close to completion, with non-binding proposals exceeding the target.
The Ethiopian government has already invested US$20 million, that part of the balance is to be raised via non-convertible preference shares aimed at domestic investors, and that Ethiopian stakeholders retain a governance role in TKGM.
Contracts and On-Site Preparations
According to Anagnostaras-Adams, construction contracts have been finalised for signing upon equity drawdown and that local and regional investors are assembled to complete the equity piece. Site works are progressing, with a new all-weather access road nearly complete, a second heavy-load road due to start within two months, and power-infrastructure procurement finished with mobilisation started. Local authorities, supported by Tulu Kapi Gold Mines Share Company (TKGM), are rolling out a phased resettlement and compensation programme intended to meet international standards.
Financial Snapshot
In its interim results, the pre-revenue mine developer reported a £3.79 million loss for the six months and ended June with just over £1 million of cash, according to African Mining Market.
Production Outlook
The first phase of development will focus on the open-pit reserve, with initial output expected to reach 160,000 ounces in the first full year. Mining is scheduled to start in mid-2027, and an underground expansion is planned to lift production to about 200,000 ounces per year.
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