KEFI Gold and Copper secures $240 million debt offering for Tulu Kapi

LONDON - KEFI Gold and Copper plc (AIM:KEFI) announced Monday it has signed a $240 million debt offering with co-lenders for its Tulu Kapi Gold Project in Ethiopia, marking a significant milestone in the project’s $340 million development plan.

The company is now focusing on finalizing the remaining $100 million in equity-risk capital, for which it has received commitments and proposals exceeding the required amount, primarily from local investors and African specialist funds.

According to the press release, the Ethiopian government has already secured $20 million of the equity component, while KEFI has invested $10 million with plans to contribute approximately $10 million more in post-closing fees and costs.

Various construction activities are already underway at the site, funded by working capital and existing facilities. These include housing construction for resettled households, installation of all-weather access roads by the Ethiopian Roads Authority, and connection to the Grand Ethiopian Renaissance Dam power grid by the Ethiopian Electric Power Company.

The company stated that the project has been designed to comply with both local and international environmental, social, and governance standards.

KEFI Executive Chairman Harry Anagnostaras-Adams said: "With the gold price at a record high, this is the perfect time to be launching Tulu Kapi."

The company projects all-in-sustaining costs of approximately $1,000-1,200 per ounce and net cash flow of $1.9-3.5 billion over seven years of initial production from the open pit reserves and initial underground resources. These projections are based on gold prices ranging from $3,000 to $5,000 per ounce.

KEFI expects to hold a 70-85% beneficial interest in the project, with the final structure to be determined by ongoing negotiations regarding the equity risk capital.

The company plans to convene general meetings in November 2025 to approve elements of the project finance package requiring shareholder approval.

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