REG - Kefi Gold and Copper - Status of Tulu Kapi Finance Closing Process

KEFI Gold and CopperAnnouncement

11/03/2025 07:15

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RNS Number : 0852A  Kefi Gold and Copper PLC  11 March 2025

11 March 2025

KEFI Gold and Copper plc

 

("KEFI" or the "Company")

 

Status of Tulu Kapi Finance Closing Process

 

KEFI (AIM: KEFI) the gold and copper exploration and development company
focused on the Arabian-Nubian Shield,is pleased to report that approvals and
other preparations are progressing well towards an all-parties signing of the
Tulu Kapi Gold Project financing and the launch of Major Works.

 

Highlights

 ·           Credit committee approval now granted by both banks
 ·           Ethiopian Country Membership approved for second bank and now being Ratified
 ·           Definitive Agreements being assembled by 31 March 2025
 ·           Remaining administrative and site procedures progressing well as regards
             certifications required for all parties Boards to approve signing
 ·           Equity capital preparations on track at subsidiary company levels

 

 

Summary

The key activity streams have been proceeding as anticipated (see announcement
4 February 2025) and are now considered to comprise procedural formalities
given the decisions which have already been taken.

 

Credit committee approvals have now been granted by both banks with typical
applicable conditions for signing and disbursement. Finalised terms and
conditions have been set for the expanded project finance secured loan package
of $240 million (see announcement 10 January 2025). Requisite internal Board
ratifications are in process, in sequence with the other formalities of
signing, the payment of success and commitment fees and the issuance notices
to proceed to the various contractors and service providers.

 

Ethiopian Country Membership for the second co-lending bank has been approved
at the Ministerial level and is going through Parliamentary Ratification after
top-level meetings in Addis Ababa in late February. This is the preferred
procedure between countries and their most aligned multilateral development
financial institutions. This form of protection places both co-lenders onto
the same in-country footing.

 

Remaining administrative procedures are proceeding in parallel with detailed
definitive agreements being assembled by 31 March 2025:

 

 ·           Government field support and the administrative confirmations required were
             recently presented by the Company to the highest levels of Federal and
             Regional Government with the follow-through in process;
 ·           Refreshed contractual confirmations for process plant and mining services are
             in train, so that signings can occur with up-to-date fixed-price and other
             relevant components;
 ·           First community compensation has been paid, establishing important precedents
             and allowing construction of the initial construction camp;
 ·           Local Government is carrying out the Community Property Survey so as to set
             the full community resettlement budget in order to avoid any misalignment
             after major works are launched;
 ·           Activities taken recently to reduce construction schedule risk:
 o                                                    Alternative access road from highway to site, now over 50% complete, to
                                                      improve efficiency and security;
 o                                                    Initial construction camp now being built;
 o                                                    Increased water supply being installed for community and works.

Equity-capital preparations at subsidiary-company levels are advancing in
parallel with the timetable. Government investment is proceeding as planned.
Sophisticated African investors are assembling for the product offering of the
KEFI Minerals Preference Share denominated as a local-currency investment
offering USD-linked protection for both principal and yield along with a
gold-upside kicker attaching to gold prices realised by TKGM above the
gold-spot price prevailing at the time of issuance.

 

KEFI Founder and Executive Chairman, Harry Anagnostaras-Adams, commented, "The
Tulu Kapi Gold Project is proceeding as anticipated, with the approvals
received from banks and widespread Government support, and for detailed
documentation to be ready 31 March 2025, to trigger full launch as soon as
possible thereafter.

 

"We are accordingly now triggering  launch steps with community, contractors
and financiers.

 

"It is fortuitous that current timing coincides with gold being at record
highs, the recent floating of the local Ethiopian currency and the
consequential investor interest in protection against further devaluation with
the sharp resurgence of economic growth in Ethiopia and the inception of major
economic reforms including the recent launch of Ethiopian Securities Exchange.

 

"The development of Tulu Kapi's regulatory framework and procedural detail
have needed continual refinement for this first such transaction in Ethiopia.
Be that as it may, we have succeeded in bringing Tulu Kapi to the starting
block with a bespoke project syndicate of Government, leading African banks,
contractors and sophisticated investors.

 

"This is a powerful syndicate for the Project's long-term protection and
optimisation. And we are now confident that all external factors support our
plan to assemble all definitive documentation by 31 March 2025, and to then
expedite drawdowns and Major Works."

 

 

 KEFI Gold and Copper plc
 Harry Anagnostaras-Adams (Executive Chairman)       +357 99457843
 John Leach (Finance Director)                       +357 99208130

 SP Angel Corporate Finance LLP (Nominated Adviser)  +44 (0) 20 3470 0470
 Jeff Keating, Adam Cowl

 Tavira Financial Limited (Lead Broker)              +44 (0) 20 7100 5100
 Oliver Stansfield, Jonathan Evans

 IFC Advisory Ltd (Financial PR and IR)              +44 (0) 20 3934 6630
 Tim Metcalfe, Florence Chandler

 3PPB LLC (Institutional IR)
 Patrick Chidley                                     +1 (917) 991 7701
 Paul Durham                                         +1-203-940-2538

 

Notes to Editor

 

KEFI Gold and Copper plc

 

KEFI is focused primarily on the development of the Tulu Kapi Gold Project in
Ethiopia and its pipeline of highly prospective exploration projects in the
Arabian-Nubian Shield. KEFI targets that production at Tulu Kapi will generate
cash flows for capital repayments, further exploration and dividends to
shareholders.

 

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