KEFI Gold and Copper (AIM:KEFI) has assembled a multi-instrument project financing package exceeding US$400 million to fund development of the Tulu Kapi gold project through Tulu Kapi Gold Mines Share Company (TKGM) and has launched construction with a 27‑month schedule targeting production in mid‑2028.
The package combines US$240 million of secured project debt, contractor commitments estimated at US$60 million, over US$100 million of equity contributions and subsidiary-level structures including proposed “Ethio Prefs” preference shares and a royalty that monetises a portion of future distributable cash flows.
KEFI expects to retain approximately an 86% beneficial interest in TKGM while the Ethiopian Federal and Oromia Regional Governments will take voting equity at the subsidiary level and contractors provide in-kind capital such as the mining fleet, and facility drawdowns remain subject to standard conditions precedent.
Tulu Kapi carries maiden Ore Reserves of 1.05 million ounces and Mineral Resources of 1.7 million ounces at an average grade of 2.7g/t and ~94% recovery, with initial average production targeted at c.166,000 ozpa and scope to expand toward c.200,000 ozpa.
KEFI’s Saudi arm GMCO, a joint venture with Saudi conglomerate ARTAR in which KEFI has been diluted to approximately 13%, has been strengthened with an independent management team, a Hancock Prospecting partnership, selection for the Saudi Exploration Enablement Program (c.US$180 million) and advancing Jibal Qutman and Hawiah.
"KEFI has reached a pivotal moment at a pivotal time," Executive Chairman Harry Anagnostaras‑Adams said.
Facility drawdowns and construction progress are the next material milestones on the 27‑month programme that targets first production in mid‑2028.
