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(Alliance News) - KEFI Minerals PLC on Wednesday said it plans to finalise funding arrangements for its Tulu Kapi gold project in Ethiopia by October.
KEFI shares were 13% higher at 0.99 pence each in London on Wednesday afternoon.
The exploration and development company, which focuses on gold and copper deposits, earlier in June said its funding requirements were less than initially expected at USD221 million compared to a forecast of USD242 million made in 2018.
The company said: "It remains that project level equity, through Tulu Kapi Gold Mines, is expected to be funded by a consortium consisting of KEFI, the Ethiopian government, Ethiopian private sector investors (hopefully including, but no longer limited to, ANS Mining Share Company) and one or more specialist mining financiers."
ANS Mining missed the June 30 deadline making its initial investment, KEFI noted.
KEFI's Executive Chair Harry Anagnostaras-Adams said: "Whilst we continue to welcome ANS Mining and offer them the opportunity to invest, this can no longer be on an exclusive basis. The project must and will keep moving forward given that the other shareholders of TKGM are already actively deploying funds."
"Given the robust economics of the project we have received significant interest to provide the outstanding asset level equity and other forms of duly subordinated investment, not only from other domestic investors, but also from international specialist mining financiers."
TKGM has until October 2020 to secure its full financing package which it says will "be secured well in advance".
"We will not allow any distractions from achieving our target to close project financing in October this year and I look forward to updating shareholders in the current quarter," added Anagnostaras-Adams.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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