RE: From kefi's very own website12 Dec 2024 10:07
There seems to be some (perhaps intentional) confusion around the difference in "financial close" and "definitive detailed documentation". It is signed and binding definitive detailed documentation that we are looking for and were / are to receive in Q4.
This definitive detailed documentation will no doubt set out a list of KEFI obligations to be met, including completion of the Early Works, completion of community resettlement preparations, perhaps some government licences, etc.
As I understand it, the next steps (and anticipated dates) are:
1) Ratification of AFC (imminent, possibly today as the HoPR are sitting. I expect that when the banking reform bill is passed in a few weeks, it might even negate the need for this ratification, so worst case a few weeks away)
2) TDB re-approval of the increased loan amount. This was driven by increasing PoG and improving security situation. Both of these have continued to improve significantly, so this will be a quick and easy one. I imagine the approvals committee meet at least monthly so I expect that this is likely already sorted. These are co-lending banks, so I'm sure this was agreed prior to AFC's approval. When AFC has been ratified there will be a KEFI RNS, in which I would expect to see confirmation of this.
3) Detailed definitive documentation. This is sitting ready to go, as per 6th Nov which states "the whole syndicate confirms the already drafted detailed definitive documentation". As soon as AFC have been ratified, then the whole syndicate can put pen to paper. Again, when AFC ratification is complete KEFI will issue and RNS either stating the this signing is imminent (they may want to have a whole PR photo-shoot event), or perhaps that AFC's ratification has triggered this and detailed documentation is now signed off by everybody. For me this is the key event and what will cause the significant rerate in the sp.
4) This allows completion of the 'Early Works', which will include a final independent security check and independent assessment of community readiness for relocation (as you would expect). As per the latest Q&A, this will happen in early '25.
5) Once that (and any other KEFI obligations stated in the detailed definitive documentation) are met, then financial close happens simultaneously with project launch, and commencement of Major Works (by syndicate member PW Mining). As per the Q&A this will be sequenced during early '25 as the Early Works are being completed and the security and community readiness checks are being completed. I expect that they will want to make a big deal of it, and have a sod cutting event with the EG, etc. This is "Financial Close", but it is the "Detailed Definitive Documentation" which is the contract we are interested in. At that stage, so long as we proceed to carry out our obligations then it is a done deal.
6) Funds begin to flow into TKGM to pay for the resettlement works, site mobilisation and the construction of T
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