Delayed 7am RNS...11 Feb 2026 15:58
KEFI (AIM: KEFI), is pleased to report the signing by subsidiary Tulu Kapi Gold Mines S.C. ("TKGM") of a US$20 million equity-ranking-royalty with Chancery Royalty Limited ("Chancery Royalty"). This is a key final part of the US$340 million financing package for the Company's high-grade/high-recovery Tulu Kapi Gold Project (the "Project" or "Tulu Kapi"). It has been creatively structured with Chancery Royalty to be an equity-risk ranking royalty and is payable alongside distributions made by TKGM to its shareholders.
A residual US$30 million of equity-risk capital is also in the process of being fully signed up this month. This comprises US$10 million of costs to be incurred during the two-year development programme and settled in KEFI shares at the then market price when applicable costs fall due during this period, and the balance of US$20 million as additional equity-risk ranking TKGM gold royalties issued to two other royalty investors on the same terms as the Chancery Royalty. That will formally complete the US$340 million Project finance package in an optimal manner. Therefore the Project finance package is now effectively covered and the Company is triggering implementation on all fronts in the field. Field teams and contractors have been mobilised and a 'Ground Breaking Ceremony' organised.
As a separate and optional matter, consideration continues to be given to the raising of capital in excess of the Project development requirements in the form of Ethiopian BIRR-denominated non-convertible, redeemable preference shares ("Preference Shares") to be issued by the Company's wholly-owned KME Holdings Limited ("KME").