Banks are planning to increase the proposed project finance debt package for the Tulu Kapi gold project in Ethiopia from $ 190 million to $ 240 million if all conditions are met and remaining formal approvals are obtained, according to Kefi Gold and Copper.
Company executive chairperson Harry Anagnostaras-Adams said the proposed increase of the loan is testimony to KEFI’s “focus, diligence, and tenacity.”
“The past two years [have] seen regulatory reforms in both countries, our flagship Tulu Kapi project being [ready] for development with the two Saudi advanced projects following, and metal prices having taken off,” he said.
“Tulu Kapi’s high grades and high recoveries offer the potential to repay all project finance debt from the estimated net cash flows of the first full year of production at the $2,600/oz gold price. Moreover, at $2 100/oz to $2 600/oz gold, the project net present value to Kefi shareholders is 6.9p to 10.5p a share, 12 to 17 times the current share price, ignoring our other assets.”
Mathew Nyaungwa, Editor in Chief, Rough&Polished
