KEFI Minerals makes "considerable" progress at Tulu Kapi Gold Project in Ethiopia

KEFI Minerals, the gold development and exploration company, has announced on Monday "considerable progress" regarding development of the Tulu Kapi Gold Project in Ethiopia.

Among the major milestones reached towards finalising the $140m infrastructure finance lease facility for the development of the gold project, was the filing of the necessary documentation with the Ethiopian government.

Furthermore, the Ethiopian Minister of Finance and Economic Development had formalised budget approval for the government to proceed with the construction and investment roles assigned to it in the project.

The company simultaneously announced that the proposed financing structure had been refined in light of "soundings" of potential investors in the listed bonds, with the placing now expected to start during the first quarter of 2018 with drawdown expected soon thereafter conditional on equity capital subscription.

A residual $20m equity requirement would then be triggered.

Project construction was seen taking place over 2018-2019 and production commissioning at the end of 2019.