RE: Rns2 Sep 2025 07:28
Highlights
Debt capital approval: The Co-lenders have now formally offered an expanded US$240 million loan facility. Facility documentation is in circulation for signing.
Ethiopian Government agencies have signed or approved definitive Project contracts that are now subject only to lender approval.
Establishment of a new Ethiopian holding company, KME Ethiopia Holdings being completed.
o Meetings with co-lenders and respective legal teams have started with a view to signing facility documentation by the end of September 2025.
sources of the c.US$100 million equity capital to be primarily at the Ethiopian subsidiary level,
o The composition of the remaining c.US$60 million is being finalised and KEFI has received conditional proposals which, in aggregate, exceed the required amount. This will be finalised along the following lines:
§ An equity risk note structured as "KEFI Ethio Prefs" - a private placement to Ethiopian qualified investors of cumulative preference shares to be issued by the newly-incorporated KME Ethiopia Holdings - to be non-convertible, redeemable after 8 years
completion of the signing of definitive documentation planned for September 2025
Triggering plans for the +5g/t underground development and resource/reserve expansion, aimed initially at doubling the current one million ounce Ore Reserve,
Mobilising to complete the previously suspended Tulu Kapi district exploration programmes, to target extensions of the Project's production life beyond the first eight years. Third party interference in the Group's rights to certain exploration properties may require legal proceedings, the outcome of which would be uncertain and the proceedings of which may forestall access to the relevant land.
"What a great accomplishment after so many years of tireless persistence by our hard-working team, to now be fortunate enough to trigger Tulu Kapi's full development at what is perhaps the early stages of a major gold market boom."
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