(Alliance News) - Kefi Gold & Copper PLC on Monday said it will use a funding package of USD356 million to develop its Tulu Kapi gold mine in Ethiopia.
The package will fund all infrastructure, the start-up of the open pit mine and the initial development of the underground mine, Kefi stated.
Completion, through the signing of binding documentation and the launch of full development, is expected at the end of the Ethiopian wet season in October.
The USD356 million will fully-fund the development of Tulu Kapi's open-pit gold mine, with the start of production targeted for mid-2023. Reserves will also be set aside for cost-overruns for production start-up and will be available to trigger the initial stages of development on the underground mine from late 2023, Kefi said.
"It has taken a great deal of work by all involved, to rigorously ensure Ethiopia's first major mining project for 30 years is designed, financed and operated to the highest standards socially, environmentally and operationally," commented Executive Chair Harry Anagnostaras-Adams.
"Whilst we are conscious of the recent turbulent situation in Ethiopia, which I am pleased to note appears to be abating, the conflict areas have been over 1,000km from Tulu Kapi and have not had any impact on the project."
Kefi will retain ownership of around 70% of the mine following financial completion.
Shares were 2.1% higher at 1.79 pence each in London on Monday morning.
By Will Paige; willpaige@alliancenews.com
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Kefi Gold (KEFI)