KEFI Gold and Copper PLC has marked a significant advancement in the development of its Tulu Kapi gold project in Ethiopia by securing a favorable debt-to-equity ratio of 80:20. This achievement represents a substantial improvement from the initial 50% borrowing limit set by Ethiopia's closed economy, showcasing the company's ability to navigate the complexities of financing in a frontier market. Executive chairman Harry Anagnostaras-Adams detailed the challenges and successes in raising substantial funds, highlighting the pioneering nature of their work in Ethiopia and the importance of overcoming regulatory obstacles to secure necessary protections for capital and personnel mobilization.
The regulatory adjustments have notably reduced the project's finance costs, allowing KEFI Gold and Copper to leverage more lower-cost capital for the $320 million project. Initially constrained by a 50% borrowing limit, the company successfully negotiated a major concession to achieve a 70:30 ratio, which was further enhanced to 80:20 by the National Bank of Ethiopia. This financial structuring is critical for the project's viability and reflects the company's strategic approach to development banking in a challenging environment.
Looking forward, KEFI Gold and Copper is focused on finalizing agreements and updating key project components by the end of May, with a comprehensive model and schedule expected by June's end. Updates include revising plant costing, conducting property surveys for community resettlement, and adjusting the mining contractor's terms to account for inflation. The company is actively coordinating with syndicate parties across various countries to ensure project alignment and adherence to the established timeline, underscoring the collaborative effort required to navigate development funding in Ethiopia. For more insights into KEFI Gold and Copper's journey towards financial close for the Tulu Kapi gold project, visit https://www.proactiveinvestors.com.
