KEFI Gold and Copper PLC said it is on track to begin construction at its Tulu Kapi gold project by the end of next year after securing key financing and reaching agreement with project partners.
The company said its full development plan for the high-grade deposit has been approved by its syndicate, clearing the way for final financial close. Executive chairman Harry Anagnostaras-Adams told the MINTEX Ethiopia conference over the weekend that groundwork for the launch is “essentially complete”.
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KEFI has finalised a project budget of $340 million, including $240 million in approved debt facilities. Equity proposals have exceeded the remaining $100 million requirement, allowing the company to optimise its capital structure in the coming weeks.
The firm expects to spend one week adjusting equity allocations and another completing documentation for financing close. It is also preparing to bring in domestic public and private investors using local currency and is laying the groundwork for a future listing of its Ethiopian subsidiary.
A Memorandum of Intent has been signed by federal and regional authorities, lenders, Ethiopia’s sovereign wealth funds, local contractors and the project’s charitable foundation, outlining commitments to the project.
KEFI said it will now step up early development work, including community housing and initial construction on processing plant infrastructure. It is also assessing whether excess local capital could accelerate longer-term plans such as underground development, regional exploration and community programmes.
If timelines are met, Tulu Kapi would become Ethiopia’s next producing gold mine, a development the government has sought to attract more foreign investment into the mining sector.
