Shares in KEFI Gold and Copper PLC (AIM: KEFI, OTC: KFFLF) soared 28% on Monday after the company announced it expects to finalise a $240 million debt financing package for its Tulu Kapi gold project in Ethiopia this week.
The long-anticipated deal — briefly delayed by a procedural issue with one of KEFI’s lending partners — marks a major milestone for the £340 million development, one of Ethiopia’s most advanced mining ventures.
Construction work is already underway on parts of the site as both equity and debt components of the financing are put in place. KEFI said it maintains sufficient working capital and access to undrawn facilities to meet its near-term funding needs until completion of the package.
Once operational, Tulu Kapi is expected to produce around 140,000 ounces of gold per year.
Executive chairman Harry Anagnostaras-Adams said the project’s launch “continues intensely on all fronts” and remains on schedule, adding that record gold prices make it “the perfect time to be launching Tulu Kapi.”
In development for several years, the Tulu Kapi project is regarded as a flagship initiative in Ethiopia’s mining sector revival. KEFI said it plans to issue a further update once the debt financing is formally completed.
