KEFI Gold and Copper PLC has reached a pivotal moment in the development of its Tulu Kapi gold project in Ethiopia, securing a debt-to-equity ratio of 80:20. This marks 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 frontier market financing.
Executive chairman Harry Anagnostaras-Adams shared insights into the challenges of raising funds in a new jurisdiction, emphasizing the pioneering nature of their work in Ethiopia. The company's success in adjusting the project's finance costs through recent regulatory changes has enabled the utilization of more lower-cost capital, benefiting the $320 million project significantly.
The journey to this achievement began with overcoming a closed economy's 50% borrowing limit, securing a major concession for a 70:30 ratio, which was later improved to 80:20 by the National Bank of Ethiopia. This progression underscores the company's resilience and strategic negotiation skills in a challenging financial 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. Efforts include revising plant costing, conducting property surveys for community resettlement, and adjusting the mining contractor's terms for inflation. The company is working closely with syndicate parties across various countries to ensure project alignment and adherence to the timeline, highlighting the collaborative approach to navigating development funding in Ethiopia.
For more detailed insights into KEFI Gold and Copper's advancements towards financial closure for the Tulu Kapi gold project, visit https://www.proactiveinvestors.com.
