Aim-listed Kefi Minerals has secured a £2-million loan facility from one of its minority shareholders to progress the Tulu Kapi gold project, in Ethiopia.
Kefi’s Ethiopian subsidiary, Tulu Kapi Gold Mines Share Company (TKGM), will soon start certain tasks around community resettlement, project development and reconnaissance of a now enlarged area reserved by the Ethiopian government for exploration in the Tulu Kapi district.
The loan facility will complement existing project financing plans, including the committed investment of between $30-million and $38-million by Ethiopian institutional investors, of which the initial release of $9-million to TKGM is due in December.
The remainder of the funds under the TKGM funding package are expected at the start of construction at the end of the first quarter of 2019, when the first phase of the community resettlement is completed.