KEFI Gold and Copper plc (LON: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, has provided an update on the continuing progress of the Company’s high-grade/high-recovery Tulu Kapi Gold Project.
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.
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 Gold and Copper 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
