KEFI Gold and Copper plc (LON:KEFI), the gold and copper exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, has announced the appointment of Stifel Nicolaus Europe Limited 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 Gold and Copper has also provided an update on recent developments at the Company’s high-grade/high-recovery Tulu Kapi Gold Project
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.
