New Q&As published24 Mar 2026 07:18
Q: You previously indicated a remaining funding requirement of $30m, including $20m via streaming and $10m via future equity at potentially higher prices. What specifically changed to increase the requirement to $46m, all via shares, and why was streaming no longer pursued?
A: The end of February arrived and KEFI felt it best to close the core financing package.
Having recently triggered the development schedule, timetable discipline is now imperative. The breakout of the Middle East conflict further prompted that we get on with it - not that it will be negative for gold over the longer term, but it simply reinforced the appropriateness of us closing our development funding.
In that context the parent company share issue provided an immediate route to locking down our fully funded position including extra for cost overrun reserves.
The banks and contractors were also keen to see this formally closed out. They are putting up 70% of the project development funding andare also listened to carefully and respectfully by the Board.
The share capital raised therefore reflects a decision to ensure the project is comprehensively funded, including appropriate contingency and working capital rather than continuing to rely on multiple yet-to-close conditional or sequential funding sources for the last pieces
Q: Why change plans against what was previously foreshadowed?
A: The Company would note that prior communications reflected at a particular point in time would represent its then-intention regarding the preferred funding mix. As is standard for any public company, such intentions are necessarily subject to changes deemed in the best interests of the company in response to external factors, including global events such as the extra risks introduced by the Middle East war, counterparty negotiations, and execution risk experienced in negotiations with different counterparties.
This should be distinguished from any notion of a fixed or unconditional commitment to stick to any particular funding route regardless of changing circumstances. The Board’s responsibility is to act in the best interests of KEFI shareholders based on the conditions prevailing at the time decisions need to be made.
Q: Why issue shares at such a discount to recent market prices?
We tried hard to defend the pricing and the price reflected weak general market trends since late February. Between 2 March and 19 March 2026, the industry index (Van Eck GDXJ) had dropped from 155 to 105 ie 32%. KEFI’s placing price was 31% below its share price on 2 March and a 14% discount to the closing price immediately prior to the announcement of the placing.
Q: Why have you not brought on a real institutional broker?
A: Perhaps the questioner is unfamiliar with Stifel, the multinational institutional broking firm which managed the Placing.
Q: It seems like the share price was hit by forward selling by bucket shops selling into the market to take placing shares a
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