KEFI Gold and Copper makes progress towards financial close for Tulu Kapi gold project in Ethiopia
London, UK
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March 27, 2024 08:09 AM Eastern Daylight Time
KEFI Gold and Copper PLC has made further progress on its Tulu Kapi gold project in Ethiopia, crossing another milestone with the $320 million development budget.
Executive chairman Harry Anagnostaras-Adams discussed the complexities of raising substantial funds in a new jurisdiction for mining, highlighting the challenges and achievements in navigating development banking and financing in a frontier market.
In an interview with Proactive's Stephen Gunnion, discussed the complexities of raising substantial funds in a new jurisdiction and mentioned the normalcy of the project's development pace, considering the pioneering nature of their work in Ethiopia, including overcoming regulatory obstacles and securing protections necessary for mobilizing the required capital and personnel.
Anagnostaras-Adams also elaborated on recent regulatory changes that have positively impacted the project's finance costs by altering the debt-to-equity ratio. Initially facing a closed economy with a 50% borrowing limit, KEFI Gold and Copper secured a major concession allowing a 70:30 ratio, which was further improved to 80:20 by the National Bank of Ethiopia. This adjustment enables the use of more lower-cost capital, significantly benefiting the project.
Looking forward, KEFI Gold and Copper aims to finalize agreements and refresh key components of the project by the end of May, with a final model and schedule set by the end of June. This includes updating the plant costing, property surveys for resettling communities, and adjusting the mining contractor's rise and fall clause for inflation.
The company is coordinating with every syndicate party across various countries to ensure alignment and adherence to the timeline, emphasizing the collaborative effort to navigate development funding in Ethiopia.
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