KEFI Gold and Copper (AIM:KEFI) gave investors an update on the Tulu Kapi mine development, and the financings supporting the project, swapping some short-term borrowings for longer-term debt.
The company said it has replaced US$15m of short-term working capital funding with US$15m of long-term, subsidiary-level equity-ranking capital, structured as a US$10m gold royalty with Mithril Royalties and US$5m of Ethiopian preference shares on previously disclosed terms, while leaving the original US$15m facility on standby.
KEFI said project implementation remains on or ahead of schedule, that Lycopodium has issued 14 detailed engineering packages, the SAG mill has been ordered, community resettlement and the 47km grid connection are underway, heavy-equipment access roads are being built and all principal EPCM, mining and earthworks contracts have been finalised, with commissioning targeted from late 2027 and full production mid-2028.
The company said project NPV and cash flows are unchanged from earlier disclosures and that a senior debt drawdown is scheduled in Q3 2025 to minimise financing costs.
It also noted the appointment of Stifel Nicolaus Europe as its financial adviser and joint broker, to work alongside SP Angel (nominated adviser) and Tavira Financial (joint broker).
