REG - Kefi Gold and Copper - Appointment of Adviser and Tulu Kapi Update

KEFI Gold and CopperAnnouncement

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RNS Number : 6276F  Kefi Gold and Copper PLC  26 May 2026

26 May 2026

 

KEFI Gold and Copper plc

 

("KEFI" or the "Company")

 

Appointment of Adviser and Tulu Kapi Update

 

KEFI Gold and Copper plc (AIM: KEFI), the gold and copper exploration and
development company with projects in the Federal Democratic Republic of
Ethiopia and the Kingdom of Saudi Arabia, is pleased to announce the
appointment of Stifel Nicolaus Europe Limited ("Stifel") as financial adviser
and joint broker to the Company and to provide a Tulu Kapi development
update.

 

Highlights

·    Stifel appointed as joint broker and sponsor for the Company's
planned move to the Main Market of the London Stock Exchange

·    All key Project milestones at Tulu Kapi tracking at or ahead of
schedule

·    All principal contracts at Tulu Kapi now finalised

·    Tulu Kapi financing packaged strengthened by eliminating the reliance
on a short-term working capital facility

·    3-year working capital facility replaced by long-term funding of
8-year+ subsidiary level equity ranking capital

·    Project economics for KEFI shareholders maintained while de-risking
Project execution and preserving upside

 

Tulu Kapi Update

 

KEFI is pleased to provide an update on recent developments at the Company's
high-grade/high-recovery Tulu Kapi Gold Project (the "Project" or "Tulu Kapi")

 

Project implementation

·    On time and on budget: All onsite and offsite Project workstreams are
tracking on or ahead of the Tulu Kapi development schedule, targeting
commissioning from late 2027 for full production mid-2028

·    Engineering work progression: Lycopodium has issued 14 detailed
engineering packages to KEFI for final approval, progressing the design and
execution definition phase of the build

·    Procurement of long-lead items: The semi-autogenous grinding (SAG)
mill, one of the highest-value and the longest-lead items in the processing
plant, has been ordered

·    Community resettlement programme underway: Land for the new housing
has been prepared and construction of the 350 replacement houses is underway.
Once the first phase of resettlement is complete, bulk earthworks at Tulu Kapi
will commence

·    Grid power linkup underway: The 47km electrical connection of the
main national grid to the Project site is in construction. Construction of the
first of two substations is well advanced, and all of the new towers have been
delivered to the Tulu Kapi district

·    Heavy equipment access roads under construction: Two new access roads
are being constructed to connect the bitumen highway to the Project site. This
will enable heavy equipment mobilisation for bulk earthworks and plant
construction along a shorter and more direct all-weather route

·    EPCM contract packages finalised: Detailed contract packages with
Lycopodium covering engineering, procurement and construction management have
been finalised

·    Mining and earthworks contract packages finalised: Detailed contract
packages with BCM Group have been finalised for bulk earthworks, drilling and
mining services

·    First gold production outlook maintained: Onsite, offsite,
engineering, procurement and contracting milestones are all progressing in
line with, or ahead of plan, and the Project remains on course for
commissioning from late 2027 and for full production mid-2028. All principal
contracts have now been negotiated

 

Project financing

Following the closing of the Tulu Kapi project equity capital package in March
2026, the Company has successfully executed its strategy to preserve
flexibility for risk mitigation. It has replaced US$15 million of short-term
working capital funding with US$15 million of long-term subsidiary level
equity ranking capital without any impact on Tulu Kapi Project economics. The
Project NPV and cash flows remain consistent with previous disclosure, but the
Company now has far more balance sheet flexibility.

·    Elimination of requirement for short-term US$15 million working
capital facility: No requirement to draw down on the existing 3-year working
capital facility. Provides additional financial flexibility and risk
mitigation for the Tulu Kapi ramp-up

·    US$15 million in long-term funding secured: Short-term capital
replaced by 8-year+ subsidiary level equity ranking capital in the form of
Ethiopian preference shares and a gold royalty. Both components have been
finalised on exactly the same terms as those previously outlined in the
Company's announcement on 11 February 2026:

o  US$10 million in equity ranking royalty at subsidiary level secured: Gold
royalty arranged with Cyprus-based specialist financier Mithril Royalties
Limited on the same terms as US$20 million royalty signed with Chancery
Royalty, but for half the amount of gold

o  US$5 million in Ethiopian preference shares signed at subsidiary level: On
the same terms as the US$6 million already signed

·    Economic metrics maintained: This capital structure rearrangement has
no impact on the Tulu Kapi economic metrics; estimated NPV and cash flows
remain consistent with previous disclosures

·    Standby liquidity preserved: The original US$15 million working
capital facility remains available and is retained on standby for additional
financial flexibility

·    Senior debt drawdown scheduled in Q3 2025: This minimises debt
financing costs, whilst having no impact on project construction

 

Appointment of Adviser

 

In addition to its role as Joint Broker, Stifel will act as Sponsor for the
Company's planned move to trading on the Equity Shares - Commercial Company
segment of the Main Market of the London Stock Exchange, which is expected to
occur in 2027.

 

Enquiries

 

 KEFI Gold and Copper plc
 Harry Anagnostaras-Adams (Executive Chairman)                        Tel: +357 2225 6161
 John Leach (Finance Director)
 SP Angel Corporate Finance LLP (Nominated Adviser)                   Tel: +44 20 3470 0470
 Caroline Rowe / Adam Cowl
 Stifel Nicolaus Europe Limited (Financial Adviser and Joint Broker)  Tel: +44 20 7710 7600

 Ashton Clanfield / Varun Talwar

 Tavira Financial Limited (Joint Broker)                              Tel: +44 20 7100 5100
 Oliver Stansfield / Jonathan Evans
 IFC Advisory Ltd (Financial PR and IR)                               Tel: +44 20 3934 6632
 Tim Metcalfe / Florence Staton

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

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