Co-Lenders’ Boards and Committees Approve Project
Co-lending banks' boards approve $240m financing for Tulu Kapi gold project; community supports resettlement plans.
- Project finance facility $240 million
- Projected net cash flow in first year exceeding $240 million
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KEFI (AIM: KEFI) the gold and copper exploration and development company focused on the Arabian-Nubian Shield,is delighted to report that following the recent confirmation of credit committee approvals (see RNS announcement 11 March 2025), the Company has now been advised that both banks have also processed Board approvals for the Tulu Kapi project.
Therefore, both of our co-lending-banks have now received support from all their respective committees and Boards to proceed. This is subject to formal updates of prior approvals and to all documentation reflecting the expanded $240 million offering, and the satisfaction of standard conditions previously reported for a transaction of this nature (see below).
Equally important, on the ground, we can now report that the community is supporting and agreeing to the resettlement plans and compensation surveys, as explained by Government authorities for individual households within the large mining licence area. This follows our earlier report on settling the first compensation sum for the initial construction camp area.
All other preparations are on track.
KEFI Founder and Executive Chairman, Harry Anagnostaras-Adams, commented, "After a decade of preparing Tulu Kapi and overcoming various external challenges, we're pleased to have secured Tier 1 support from the Government, industry specialists, and financial institutions to initiate development. This comes at a time when gold prices are at record highs, with projections indicating net cash flow surpassing the total project finance debt of $240 million in the first year alone.
"Of course, the support of the Tulu Kapi community is by far the most important foundation for our Project. Their continued support is very pleasing to witness. The community will have an important role to play in establishing Tulu Kapi as a 21st century-standard gold mine and one of Ethiopia's flagship developments."
KEFI Gold and Copper plc
| Harry Anagnostaras-Adams (Executive Chairman) | +357 99457843 |
| John Leach (Finance Director) | +357 99208130 |
| SP Angel Corporate Finance LLP (Nominated Adviser) | +44 (0) 20 3470 0470 |
| Jeff Keating, Adam Cowl | |
| Tavira Financial Limited (UK Lead Broker) | +44 (0) 20 7100 5100 |
| Oliver Stansfield, Jonathan Evans | |
| IFC Advisory Ltd (UK Financial PR) | +44 (0) 20 3934 6630 |
| Tim Metcalfe, Florence Chandler | |
| 3PPB LLC (North American Financial PR) | |
| Patrick Chidley | +1 (917) 991 7701 |
| Paul Durham | + 1-203-940-2538 |
Remaining Steps to Full Project Funding Sign Off
Having now received credit committee and Board clearances from the co-lending banks, the next steps are:
| · | Updating of all banking details and arrangements for latest approvals and associated plans; |
| · | Receipt of the remaining Government confirmations on various well understood and already discussed issues, including Parliamentary Ratification that both of our banks have the same Country Membership protections in Ethiopia - this has been done for one bank and for the other it is in advanced process after having been approved at Ministerial level; |
| · | Last-minute certifications of security, community readiness and the project financial model; and |
| · | Formal signing of detailed definitive documentation reflecting all the above |
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.