Kefi secures final signing for loan to advance Ethiopian project

This follow an announcement in October last year and the subsequent arrangement of the $100-million equity funding.

“It is all systems go in Ethiopia. I am delighted to confirm the banking syndicate have now signed binding final documentation for the agreed $240-million debt funding,” Kefi founder and executive chairperson Harry Anagnostaras-Adams says.

The balance of the $100-million equity-risk capital, being $30-million of subordinated streams and royalties and $20-million of Ethiopian preference shares, is undergoing final documentation.

Signing of the fully integrated final funding package remains on track for February.

Additional offerings of this type, which are not dilutive at the plc or asset level, totalling $36-million are being considered to potentially boost cash reserves, which in turn would also fund exploration and social programmes, Kefi informs.

Following the placing of $20-million in December last year, which completed the balance of the equity funding required for project launch, a number of works have started or advanced this month.

This includes starting compensation payments for the first phase of community resettlers; beginning land clearing to construct housing for resettlers; the plant construction contractor mobilising his team and now focusing on procurement; and starting of electricity transmission works at zonal centre Ghimbi, for connection to Tulu Kapi.

Operations will continue to be advanced over the coming weeks in conjunction with full financial close.

“We are delighted to be moving into full financial close and drawdown of funding at a time when the gold price is trading above $4 700/oz and Ethiopia undergoing transformational private sector-led growth . . .” Anagnostaras-Adams avers.