KEFI Gold and Copper has secured $240 million for the Tulu Kapi Gold Project in Ethiopia, up from $190 million. They are progressing with local bond listings and insurance arrangements while initiating major construction works. The NPV per KEFI share is now 15 pence, reflecting strong gold prices. A strategic shift also includes reducing their stake in a Saudi joint venture to focus on Ethiopian assets.
KEFI Gold and Copper, listed on AIM, has increased its financial backing for the Tulu Kapi Gold Project in Ethiopia from $190 million to $240 million. This development is part of the company’s preparations for bond listings and securing necessary insurance. Community works are completed, with major construction activities underway to mitigate risks associated with project timelines.
The company is advancing its plans for a local listing through EthioBond, fueled by strong interest aligning with their financing strategy. In tandem, the Ethiopian parliament is anticipated to ratify AFC membership by February 2025. Key agreements related to construction and mining services are scheduled for final checks in March 2025, including the assembly of an underwriting panel for insurance arrangements.
Harry Anagnostaras-Adams, KEFI’s Executive Chairman, emphasized the progress in coordinating financial closure and launching major works for the project. With gold prices at $2,800 per ounce, the potential net present value (NPV) of Tulu Kapi per KEFI share has risen to 15 pence. Additionally, KEFI plans to lower its stake in its Saudi Arabian joint venture from 25% to 15%, focusing on expanding its Ethiopian projects.
The Tulu Kapi Gold Project is a significant mining venture situated in Ethiopia, with increasing investment and development activities aimed at enhancing production capabilities. KEFI Gold and Copper aims to bolster financing through bond offerings and is actively engaging in local partnerships. They are navigating several regulatory and operational milestones, which are essential for moving forward with large-scale construction and operational commencement.
KEFI Gold and Copper’s strategic increase in funding for the Tulu Kapi Gold Project signifies its commitment to advancing mining operations in Ethiopia. The company is making significant progress with financing, regulatory approvals, and community preparations. As gold prices remain strong, the project holds substantial potential value for KEFI shareholders and reflects the company’s pivot towards strengthening its core assets.
Original Source: www.zawya.com
