KEFI Gold and Copper has achieved a significant milestone by raising £7.6 million to accelerate the development of its flagship Tulu Kapi Gold Project in Ethiopia. This strategic funding not only underscores investor confidence but also positions the company to capitalise on a transformative opportunity in the gold mining sector.
The recent equity raise attracted both existing and new institutional investors, reflecting strong market confidence in KEFI’s vision and execution strategy. The proceeds are earmarked for critical pre-development activities, including community resettlement, infrastructure enhancements, and early-stage mobilisation efforts. These initiatives are pivotal in maintaining momentum as the project approaches full financing closure, anticipated by mid-2025.
A cornerstone of KEFI’s progress has been its successful lobbying efforts, which culminated in Ethiopia’s ratification of membership in the Africa Finance Corporation (AFC). This development unlocks access to substantial funding avenues, bolstering the financial framework necessary for the Tulu Kapi project’s advancement.
The Tulu Kapi Gold Project is designed as a conventional open-pit mine with an expected annual production of approximately 140,000 ounces of gold over an initial seven-year mine life. KEFI’s Ethiopian subsidiary, TKGM, is spearheading the project in collaboration with a consortium of international and local partners, including banks, contractors, and government stakeholders.
Financial projections for Tulu Kapi are compelling. At a gold price of $3,000 per ounce, the project anticipates a net operating cash flow of $304 million in its first year, with $240 million allocated for debt repayment. Over the mine’s lifespan, total cash flow is projected between $1.1 billion and $1.6 billion, highlighting the project’s robust economic potential.
London-listed company 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.
