KEFI Gold and Copper plc (AIM: KEFI) has reported a key milestone for its Tulu Kapi Gold Project in Ethiopia, with the Ethiopian Council of Ministers formally approving the country’s membership in the Africa Finance Corporation (AFC). This step is essential to enabling AFC’s participation in financing the project and is now awaiting ratification by the Ethiopian Parliament.
AFC is one of KEFI’s lead co-lenders, and its involvement, alongside the Eastern and Southern African Trade and Development Bank (TDB), which is already a member state, is part of the financial syndicate supporting the project’s development. The AFC membership approval removes a major condition precedent for the project’s financing.
With this hurdle cleared, KEFI confirmed that it will proceed with the next stages of the project launch as previously outlined in agreements with the Ethiopian government and syndicate partners.
The Tulu Kapi Gold Project is KEFI’s flagship asset, containing a probable ore reserve of 1.05Moz and total mineral resources of 1.7Moz. The project is expected to produce around 140,000oz of gold annually during its initial seven-year open-pit phase, with all-in sustaining costs estimated at US$800–900/oz.
KEFI anticipates the operation will generate strong cash flows, supporting debt repayments, further exploration, and potential shareholder returns.
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