RE: Good 3 months30 Sep 2025 17:56
This was a statement from an RNS in JANUARY 2024:
Whilst we await the drawdown of the US$320 million Project funding, KEFI has started the requisite low-cost launch-preparations to enable the Project to move forward safely and efficiently. These include:
· Personnel being dispatched into the field to brief the community and carry out required site works;
· Dismantling the old exploration camp (on the planned open pit) and installing new communication and staging bases along our transport route as part of the upgrading of safety systems; and
· Works by contractors. including:
o process-plant contractor completing Front End Engineering and Design;
o mining contractor establishing its local corporate entity and clearing its work rosters with the department of labour;
o electricity contractor procuring all (and taken delivery of most) of the equipment required for connection to the mains grid; and
o road contractor completing upgrades to some bridges on existing routes, as well as the surveys of the new additional all-weather access road.
Project Financing at the Project and Subsidiary Level
The long-agreed US$320 million financing plan (excluding the mining fleet provided by the contractor and excluding historical expenditures of approximately US$100 million) has been refined as follows:
· The debt portion of US$190 million remains from lead-lender Southern and Eastern Africa Trade and Development Bank and co-lender Africa Finance Corporation;
· The US$40 million from share issues by KEFI subsidiaries remains from the Federal and Regional Government;
· The US$70 million Equity Risk Notes remain largely from local subsidiaries of multinational corporations who have been given Government permission to invest local currency and be repaid in hard currency, repayable in cash or equity at KEFI's election as from year 4 at then market prices; and
· Having received the recent clarifications, the subsidiary-level equity-ranking product-linked funding piece of US$20 million can now also be finalised. Discussions have already commenced with well-known industry-specialist financiers. We have deliberately withheld commitments on this until now, when the rest of the funding package is clear.
The principal Project contractors are Lycopodium Limited (process plant design and construction), PW Mining (mining services), Ethiopian Electric Power Company and Ethiopian Roads Authority.
Executive Chairman, Harry Anagnostaras-Adams, commented:
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