Wednesday , June 12 2024

Green Light for Gold: Kefi’s Ethiopian Project Poised for Launch

A glimmer of gold shines bright on the horizon for Kefi Gold and Copper, as the company’s flagship Tulu Kapi project in Ethiopia has secured the final nod from the lead lender’s credit committee. This crucial green light unlocks a $320 million financing package, paving the way for the development of the “shovel-ready” high-grade gold mine.

The approval marks the culmination of a concerted effort by Kefi and its syndicate members, including lead contractors and equity partners. Notably, the Ethiopian government has played a key role in smoothing the path with negotiated exemptions from foreign exchange restrictions, commitments to permanent security protection, and additional safeguards for lenders.

The tightly coordinated financing package, designed at the subsidiary level, reflects the confidence of international players in Kefi’s vision and the project’s potential. This confidence extends beyond Kefi’s immediate partners, with both project lenders recently securing “country membership” status, a set of protections offered by the Ethiopian government to development finance institutions.

Beyond financial hurdles, Kefi is actively engaging with the local community. Having briefed church leaders and congregations, the company has also provided critical medical treatment through the Tulu Kapi Charitable Endowment in response to a recent malaria outbreak. This commitment to social responsibility goes hand-in-hand with preparing detailed legal documentation for final signing with the project syndicate.

While the full project launch remains contingent on standard conditions and independent confirmation of security and community readiness, Kefi CEO Harry Anagnostaras-Adams is optimistic about the timeline. “The first half of the year is within reach,” he affirms, highlighting the crucial role of the Ethiopian government and syndicate members in bringing the project to this pivotal stage.

With independent technical due diligence reaffirmed and a confident syndicate on board, Anagnostaras-Adams feels a surge of optimism. He believes the “targeted value-add from project implementation is many times today’s Kefi share price,” underscoring the company’s faith in the project’s transformative potential.

Kefi’s journey to golden success is not limited to Ethiopia. The company boasts a promising exploration pipeline in Saudi Arabia, adding another layer of excitement to its prospects. As the Tulu Kapi project edges closer to reality, Kefi stands poised to rewrite its story, etching a golden chapter in the annals of African mining and beyond.

By: Michael Mondoloka

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