• Kefi secures $240M loan for Ethiopia’s Tulu Kapi gold project
• Additional $100M to be raised via equity, local investors
• Gold production expected mid-2027, targeting 164,000 oz/year
  

Kefi Gold and Copper announced on Monday, October 20, the signing of a $240 million loan agreement with the Africa Finance Corporation (AFC) and the Trade and Development Bank (TDB) for its Tulu Kapi gold project in Ethiopia. This step finalizes the transaction after months of negotiations, though it does not cover the entire funding needed for the mine's construction.

Kefi plans a total expenditure of $340 million to launch the development of Tulu Kapi. With the $240 million secured from lenders, the company must now raise an additional $100 million. Kefi stated it has already secured $20 million from the Ethiopian government and has invested $20 million of its own equity. Commitments from local and African specialized funds and investors have been announced to mobilize the remaining $60 million, primarily through equity issuances.

"We are delighted that the Tulu Kapi debt offering has now been signed by all the relevant parties. This has triggered further activity at site as part of the launch of full Project development this month and is allowing the remaining equity proposals to be finalised amongst the assembled local and specialist investors," commented Harry Anagnostaras-Adams, the company’s Executive Chairman.

Kefi aims to complete the remaining financing steps by November, subject to shareholder approval of the announced transactions. The eventual disbursement of funds will pave the way for the construction phase of Tulu Kapi. Production is now slated to begin in mid-2027, pushed back from the previous target of 2026.

Once operational, Tulu Kapi is expected to provide Ethiopia with a new gold mine capable of producing 164,000 ounces of gold per year over the first seven years of operation. The East African country is also anticipating the start of production at Kurmuk, another mine with an annual capacity of 200,000 ounces being developed by Allied Gold, expected by 2026.

Aurel Sèdjro Houenou