KEFI Gold and Copper Plc said its Tulu Kapi Gold Project in western Ethiopia remains on track to enter full development in October 2025, as a US$340 million financing package nears final commitment.
The London-listed company said board approvals for a US$240 million debt facility from two co-lenders have been secured, with formal signing expected within a week. The remaining US$100 million in equity risk capital is also close to completion, with non-binding proposals exceeding the target.
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The Ethiopian government has already invested US$20 million, while the balance is due to be raised partly through non-convertible preference shares aimed at domestic investors.
Construction contracts have been agreed and will be signed once equity funds begin to flow, the company said in an update issued alongside its unaudited interim results for the six months to June 30.
Site work financed through working capital facilities is gathering pace. KEFI said a new all-weather access road is nearly complete and work on a second heavy-load road will begin within two months. Procurement for power infrastructure is finished and mobilisation has started.
Local authorities, supported by Tulu Kapi Gold Mines Share Company (TKGM), are rolling out a resettlement and compensation programme under a phased plan intended to meet international standards.
The first phase of mine development will focus on the open-pit reserve. Initial output is expected to reach 160,000 ounces in the first full year, generating around US$200 million in operating cashflow at a gold price of US$2,500 an ounce. Mining is scheduled to start in mid-2027, with underground expansion planned to lift production to about 200,000 ounces per year.
KEFI controls the project through TKGM but Ethiopian stakeholders retain a governance role. The government appoints non-executive directors representing the sovereign funds and the Ministry of Finance.
KME Ethiopia Holdings, which will hold KEFI’s TKGM stake, is expected to seek a future listing on the planned Ethiopian Securities Exchange.
