2024-02-13 12:38:09
(Alliance News) – Shares of Kefi Gold & Copper PLC rose on Tuesday, after the company noted progress in the multi-party financing package for its Tulu Kapi gold project.
Kefi is a gold and copper exploration company based in Nicosia, Cyprus, focused on assets in Ethiopia and Saudi Arabia. The company’s shares were up 16% at 0.66 pence each in London midday on Tuesday.
The increase follows Kefi’s announcement that financing deals for its 95%-owned Tulu Kapi gold project in western Ethiopia were close to being concluded.
In January, Kefi received confirmation of conditional approval from the final credit committee of its main lender.
The company said the other parties involved in the financing syndicate will go to their respective credit committees to approve the financing package this month. The contractors involved in the union also reaffirmed their readiness to sign the draft definitive documentation for a full launch of the project during the first half of 2024, in line with previous schedules.
Tulu Kapi’s total financing plan is $320 million, not including the mining fleet provided by its contractor, PW Mining, and historical expenses of around $100 million.
Of this amount, the debt portion of USD 190 million was obtained from the project’s main lender, the Southern and Eastern Africa Trade and Development Bank, and the co-lender, the Africa Finance Corporation.
40 million USD was raised through the issuance of shares by Kefi subsidiaries. An additional USD 70 million was raised by local subsidiaries which received authorization from the Ethiopian government in October to invest in local currency.
In October, Kefi received formal confirmation from the Ethiopian National Bank of details relating to the offshore banking operations of its subsidiary Tulu Kapi Gold Mines Share Co. According to Kefi, this decision by the Ethiopian government allowed the mining project to escape government controls. exchange and capital.
Awaiting the release of the USD 320 million project financing, the company has begun preparations to launch Tulu Kapi. Personnel were sent to inform the area community and carry out work on site. Kefi also began dismantling the old exploration camp and installing new communications and transit bases along the transportation route.
Harry Anagnostaras-Adams, Executive Chairman of Kefi, said: “This multi-party funding at subsidiary level is now progressing on the basis of government commitments finally received in October, allowing the lead lender to quickly process its approval in December 2023 and at all other stakeholders to trigger their respective sequencing processes.
By Hugh Cameron, Alliance News reporter
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