KEFI Gold and Copper (AIM: KEFI) has reported further positive developments at the company’s high-grade Tulu Kapi Gold Project in Ethiopia as it prepares for full launch in H1 2024.
As previously reported, all of the required development budget of US$320M has been sourced at the subsidiary level. Following the final approvals from the lead-bank, all other parties triggered their formal approval processes which are now all advancing, notably including progress with both the co-lending bank and the local equity-capital investors.
Harry Anagnostaras Adams, executive chairman, commented, “I am delighted to report the initial board approval of a major local equity-capital provider. And it is especially pleasing that the instrument designed for this transaction, the equity risk note, has been streamlined under the lower-cost approach. Our modelling and production profile for this high-grade open pit gold mine, based on a gold price of US$1,864/oz (versus current spot of US$2,170/oz), shows sufficient cash will have been generated at the proposed time of repayment to repay these ERN in cash at the time they fall due.”
Recent regulatory changes have facilitated the improvement to the equity funding structure which has lowered overall finance costs. The regulatory changes of note were the foreign exchange exemptions, the increase in the maximum permissible ratio of debt to equity from 70:30 to 80:20, and the deeming as foreign direct investment the re-investment of the local currency retained earnings of multi-national corporations into new business sectors.
Additional project updates include preparing for the resettling of the local community, procurement and construction, the establishment and deepening of operational banking support and working capital sources, and conditions precedent to signing definitive detailed formal agreements.
To find out more, please visit www.kefi-goldandcopper.com
To read more articles like this, please visit www.theassay.com/news
