• KEFI Gold and Copper is set to sign a $240 million financing deal for Ethiopia’s Tulu Kapi gold project, marking a significant milestone.
• The $420 million project is fully permitted, with construction planned to start in 2025 and gold production targeted for early 2027.
• Tulu Kapi will create 1,500 jobs, boost Ethiopia’s gold exports, and support the growth of the mining sector as prices remain above $4,000 per ounce.

KEFI Gold and Copper plc, a London-listed mining company, announced on October 13, 2025, that it is close to finalizing a $240 million financing package for its flagship Tulu Kapi gold project in Ethiopia. The company said the signing of the agreement is expected this week, following the resolution of a minor procedural issue involving one of the lenders. This milestone marks a decisive step toward the launch of the $340 million project, coming at a time when gold prices have reached record highs above $ 4,000 per ounce.

KEFI Gold and Copper, founded in 2006 and listed on the London AIM market, focuses on developing projects in the Arabian-Nubian Shield, a mineral-rich geological region that spans Ethiopia, Saudi Arabia, and Sudan. The company has several exploration interests in this region, but Tulu Kapi remains its principal asset, representing the majority of its estimated market value. I

n recent years, KEFI has raised funds through share placements and warrants to advance the development of Tulu Kapi. Executive Chairman Harry Anagnostaras-Adams said that all project partners remain on schedule for a full launch within the coming weeks. Following the company’s announcement, KEFI’s shares were up by 25.23% at mid-day (12:00 GMT+1), lifting its market capitalization to about $140 million.

The Tulu Kapi gold project is located in the Oromia region, around 360 kilometers west of Addis Ababa. The site is located close to a main road and within 40 kilometers of Ethiopia’s national power grid, offering relatively easy access to key infrastructure. The deposit was first identified in the 1930s and later explored by Nyota Minerals between 2009 and 2013. KEFI acquired a 75% stake in December 2013 for £4.5 million, and the remaining 25% in 2014 for £0.75 million and 50 million shares. The Ethiopian government holds a 5% free interest in the project, which is covered by a 20-year mining license granted in April 2015.

The mine plan is based on a feasibility study that has been regularly updated, most recently in 2025. The plan encompasses a processing capacity of two million tonnes of ore per year, with a total development cost now estimated at $340 million, which includes upgrades to infrastructure and equipment. The project has obtained all key permits and an Environmental and Social Impact Assessment, approved by the Ethiopian Ministry of Mines, which was most recently updated in 2023.

The project's financing includes $240 million in debt provided by a group of international lenders and $100 million in equity to be raised from KEFI’s investors and strategic partners. Once the debt agreement is signed, the company plans to move forward with the first phase of construction. Early works, including access road preparation and the community resettlement process, began in September 2025.

According to KEFI’s current schedule, the financing signing, contractor mobilization, and completion of the initial phase of resettlement are planned for October and November 2025. Major construction work on the mine and processing plant is expected to commence in late 2025 and continue through mid-2026, with gold production targeted to start in early 2027.

Tulu Kapi is designed to produce about 140,000 ounces of gold per year during its initial seven years of operation. Production costs are expected to remain well below current market prices, providing a margin for profitable operation if gold prices stay at current levels.

The project encompasses a resettlement program for local communities, job creation and training initiatives, as well as environmental measures including water management and land rehabilitation. Approximately 1,500 direct jobs are expected to be created during construction, with around 80% of these positions reserved for local workers. The Ethiopian government will benefit through taxes, royalties of between 5% and 8%, and its 5% ownership stake in the project.

Ethiopia’s government has introduced reforms in the mining sector since 2018 to encourage foreign investment and diversify the economy. Gold is the country’s leading mineral export, and authorities aim to double national production to 10 tonnes per year by 2028. With construction now imminent, Tulu Kapi stands as one of the country’s most advanced industrial mining projects and could play an essential role in strengthening export earnings and regional development.

The completion of the $240 million financing would enable KEFI Gold and Copper to move into the construction phase and bring the Tulu Kapi mine into production within two years. The company is expected to release additional updates once the financing documents are signed and the first funds are made available.

Idriss Linge