Aim-listed Kefi Gold and Copper has announced that it requires $356-million in funding to develop the Tulu Kapi gold project, in Ethiopia, and that the majority of principal approvals from the funding syndicate have been obtained.
This amount will suffice to fund all infrastructure, the start-up of the openpit mine and initial development of an underground mine.
The company expects to close financing in October and in such a manner that it will retain 70% of the project’s operating company – Tulu Kapi Gold Mines Share Company.
Kefi has focused on minimised ownership dilution by maximising subsidiary-level finance, and arranging for Kefi-subsidiary-level financing with conversion rights into Kefi shares to be based on the volume-weighted average price at the time of production – which the company believes will be materially higher than at current levels – if not repaid beforehand.
The company has already started with offsite works related to roads and power, as well as principal on-site contractors.
If all proceeds to plan, the Tulu Kapi project should start producing gold in mid-2023.