They are described as “reputable African
banking organisations” willing to offer US$85mln in senior secured debt
at coupon of 8%..
Tulu Kapi is a gold mine project in Ethiopia
They are described as “reputable African banking organisations” willing to offer US$85mln in senior secured debt at coupon of 8%.
Tulu Kapi is expected to cost around US$130mln – less than half the capital expenditure envisaged by previous management.
The company, led by chairman Harry Anagnostaras-Adams, has already secured US$20mln of equity investment from the Ethiopian government.
The update on funding was released ahead of KEFI’s annual meeting at which Adams will tell investors: “The finance plan is now founded on conventional project finance debt and equity - and there is no requirement for gold streaming nor gold for price hedging.
“The syndicate of financial backers is first-tier and includes project lead-contractor Ausdrill-African Mining Services on the mining side and Lycopodium on the processing side.”
In the coming quarter, KEFI expects to finalise regulatory and “all other approvals” as well as delving into the detailed documentation for project contracting and financing.
It also plans to start installing the production operations team.
KEFI expects to produce around 100,000 ounces of gold a year for the next decade from Tulu Kapi at an all-in sustaining cost of approximately US$724-US$752 an ounce.
The ore reserve is 15.3mln tonnes at 2.12 grams per tonne for a total of 1.05mln ounces.Read more here
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