Ethiopia’s Tulu Kapi gold project is set for development as Kefi Gold and Copper secures a $240 million financing deal. The investment marks a significant milestone, enabling the commencement of major construction activities at the site in western Ethiopia.
The financing package has received approvals from international banks involved in the co-lending arrangement, with Ethiopia’s endorsement of the second participating bank in its final stages. Internal board reviews and other necessary procedures are progressing, including the payment of fees and the issuance of work orders to contractors.
Kefi expects to finalize definitive agreements by March 31, with efforts to raise additional equity capital advancing simultaneously. The Ethiopian government remains committed to the project, signaling strong national support for the venture.
Additionally, Kefi is introducing an investment option tailored for African investors. The preference share offering, denominated in Ethiopian currency, is designed to provide dollar-linked protection on investments and returns. Investors will also benefit from a “gold-upside kicker,” allowing them to gain from rising gold prices.
Kefi’s Executive Chairperson, Harry Anagnostaras-Adams, expressed confidence in the project, emphasizing its alignment with favorable market conditions. With gold prices at record highs, the Ethiopian Birr recently floated, and significant economic reforms underway, the timing is considered ideal for the project’s launch.
Recognizing the complexities of Ethiopia’s regulatory landscape, Anagnostaras-Adams highlighted the project’s pioneering nature. “We have built a strong syndicate of government, leading African banks, contractors, and investors to ensure the long-term success of Tulu Kapi,” he stated.
With final documentation expected by the end of March, Kefi anticipates swift access to funds, paving the way for rapid construction. The Tulu Kapi gold mine is poised to become a key contributor to Ethiopia’s growing mining sector and overall economic expansion.