London-listed Kefi Gold and Copper says the remaining finance syndicate approval process in respect of the Tulu Kapi project, in Ethiopia, is on track for final approvals this month.
The company has started with launch preparations on site ahead of construction, which is earmarked to start by midyear.
The project will start producing gold by mid-2026 at a rate of 200 000 oz/y.
All of the required development budget of $320-million has been assembled at the subsidiary level in the form of $190-million in secured debt, $100-million in equity risk notes and between $20-million and $40-million in share subscriptions to Kefi subsidiaries.
Kefi has a 70% stake in the Tulu Kapi project and stakes of 25% each in the Hawiah and Jibal Qutman projects, in Saudi Arabia.
Kefi is targeting an 80% beneficial interest in the Tulu Kapi project through agreements and processes with the Ethiopian central bank, since the government of Ethiopia is a co-shareholder in the holding company for Tulu Kapi.
The company is also undertaking early construction works at another industrial-scale gold mine development west of Tulu Kapi, as well as a modernisation programme at an established operating gold mine south of Tulu Kapi.
Ethiopia’s top five gold development projects are poised to raise the country’s gold production from 400 000 oz/y to more than 1.5-million ounces a year within the next five years.
Meanwhile, Kefi continues to advance drilling programmes at both its projects in Saudi Arabia, which are aimed at expanding the resources and/or upgrading resources to the indicated category.