KEFI Gold and Copper has formally launched the construction phase of its Tulu Kapi gold project in Ethiopia, after securing the final components of its multi-sourced project financing. This step marks a significant shift in the company’s risk profile, transitioning from development-stage uncertainty to construction and delivery risk, with commissioning scheduled for 2025 and production targeted for 2026.
The financing package, valued at around $320 million, combines equity and debt contributions from both local and international sources. It includes a long-anticipated equity investment from the Ethiopian government and other local partners, in addition to previously arranged commitments from project-level financiers. KEFI’s own contribution remains modest in relative terms, limiting dilution for existing shareholders while retaining majority ownership of the project.
All principal contracts are now in place. Lycopodium has been appointed as lead contractor for the processing plant, and field mobilisation has commenced. The construction plan involves a staged approach, beginning with site preparation, resettlement, and infrastructure upgrades, followed by installation of processing facilities and development of the open pit. Mining activity is expected to begin six months prior to plant commissioning to allow for a smooth operational start-up.
KEFI Gold and Copper plc (LON:KEFI) is an exploration and development company focused on gold and copper deposits in the highly prospective Arabian-Nubian Shield. The Company operates in Ethiopia and Saudi Arabia with projects including Tulu Kapi project, Jibal Qutman EL and Hawiah.
