REG - Kefi Gold and Copper - Tulu Kapi Project Finance and Launch Update

KEFI Gold and CopperAnnouncement

Mon 12:00

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RNS Number : 6785K  Kefi Gold and Copper PLC  08 December 2025

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

8 December 2025

KEFI Gold and Copper plc

("KEFI" or the "Company")

Tulu Kapi Project Finance and Launch Update

KEFI (AIM: KEFI), a gold and copper exploration and development company
focused on the Arabian-Nubian Shield with a pipeline of projects in the
Federal Democratic Republic of Ethiopia, and the Kingdom of Saudi Arabia, is
pleased to provide an update on the continuing progress of the Company's
high-grade/high-recovery Tulu Kapi Gold Project (the "Project" or "Tulu
Kapi").

Highlights

·    As per the Company's announcement of 20 October 2025, of the total
Project funding requirement of US$340 million:

o  a debt offering had been formally accepted for US$240 million, and

o  the remaining requirement of US$100 million needed to be in the form of
equity-risk capital, of which US$40 million had already been arranged and
US$60 million was yet to be filled.

·    Since 20 October 2025, the following has been carried out:

o  The detailed debt documentation for US$240 million has been assembled for
execution, and in respect of the US$60 million which had yet to be finalised,
we are pleased to provide the following update:

§ The Company has signed terms sheets for US$40 million in the form of
Equity-Ranking Gold Streams which give KEFI the right to draw up to an
aggregate of US$20 million, together with the conditional right to an
additional US$20 million subject to due diligence.

§ The Company is processing proposals of US$43 million for its innovative
Ethiopian Birr denominated Preference Shares (Redeemable and Non-Convertible)
with specific qualified local investors, US$23 million of which has progressed
into the detailed documentation stage.

§ A US$50 million in-country-level investment by a specialist African fund
remains in advanced discussions, together with consideration of other
proposals to optimise the equity-risk component of the Project financing
should they be preferred.

The Company intends to finalise the entire Project finance package this month
as foreshadowed, enabling full launch of the Project, and will provide an
update once all the aspects of the financing are concluded.

 

Enquiries

 

 KEFI Gold and Copper plc
 Harry Anagnostaras-Adams (Executive Chairman)       +357 2225 6161
 John Leach (Finance Director)
 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 Staton
 3PPB LLC (North American Institutional IR)
 Patrick Chidley                                     +1 (917) 991 7701
 Paul Durham                                         +1-203-940-2538

 

Further information can be viewed at https://www.kefi-goldandcopper.com
(https://www.kefi-goldandcopper.com/)

 

Updated Indicative Economic Metrics for Tulu Kapi Gold Project

100% Basis, after taking into account proposed Gold Streams and Preference
Shares

Gold Stream terms:

·    Gold delivery obligations are to rank at the bottom of the cashflow
waterfall after all costs and outgoings (including debt service), but before
dividends and repayment of shareholder loans

·    Each US$10 million tranche is entitled to 3% of the gold produced
from TKGM's mining licence until 30,000 oz of gold have been sold under the
stream, after which the entitlement steps down to a right to buy 2% of the
gold for the life of the mine

·    Gold sold to streamers at 20% of prevailing market price

Preference Share features:

·    Non-Convertible

·    8 Year Term

·    Redeemable at the same official exchange rate (Ethiopian Birr to US$)
as at issuance

·    15% yield which accrues for the first 4 years, payable in US$ or
BIRR-equivalent of US$ (as at date of issuance)

·    Potential upside for investors based on the difference between the
gold price prevailing at the time of issuance and as at maturity, calculated
and payable at maturity by multiplying that price difference by the gold
oz-equivalent of the sum invested

Economic Metrics and the Impact of the Equity-Ranking Notes:

·    Net cash flow over the first 7 years, before and after servicing
equity-ranking notes in the form of US$40 million of Equity-Ranking Gold
Streams and US$43 million of Preference Shares:

o  At US$3,000/oz gold: US$1,653 million before and US$1,209 million after

o  At US$5,000/oz gold:US$3,353 million before and US$2,675 million after

·    IRR% and NPV of Tulu Kapi to KEFI shareholders, from net cash flow
over the first 7 years available after servicing US$240 million of debt, US$40
million of Gold Streams and US$43 million of Preference Shares:

o  IRR% 107% to 195 % at US$3,000-5,000/oz gold price

o  NPV US$605 million to US$1,682 million (5% discount rate, at estimated 75%
KEFI beneficial interest) at US$3,000-5,000/oz gold price

o  NPV per KEFI share in issue 5-14 pence (5% discount rate, at an assumed
75% KEFI beneficial interest) at US$3,000-5,000/oz gold price

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