Aim-listed gold and copper developer Kefi Gold and Copper has confirmed the capital requirement to build the Tulu Kapi gold mine, in Ethiopia, to the stage of first production, is 7% higher than originally anticipated.
The company explains that the higher capital cost of $320-million, compared with the initial $300-million, is owing to significant inflation increases being experienced globally.
Fortunately, the project’s financing syndicate members have indicated a willingness to increase their investment, ensuring that the project will be funded under a previously agreed financing structure.
Moreover, Kefi says one syndicate members has waived a key condition that was necessary, involving agreement with a particular Ethiopian government policy matter, owing to “a good relationship between parties and significant progress made”, Kefi cites.
Accordingly, the final proposed finance plan for the Tulu Kapi project has been circulated among syndicate members for final sign off.
This broader syndicate approval of the final finance plan is expected in mid-November, following which mine construction will start.