• Kefi says it has secured $340 million to develop the Tulu Kapi gold mine

• The project targets first production in 2027 after several schedule setbacks

• Annual output is expected to reach 164,000 ounces in the early years

After several delays in recent years, mining company Kefi Gold and Copper says it is now well positioned to launch the development of its Tulu Kapi gold project in Ethiopia. In a note dated December 22, the company said it has completed the steps required to mobilize the $340 million needed to build the mine.

Kefi has been seeking to secure this financing for several years, with limited success. Earlier this year, the situation again forced the company to push back the start of production at Tulu Kapi to 2027, from 2026 previously. Despite this delay, Kefi recently reported significant progress in negotiations to finalize the funding package.

This includes the completion of a $240 million loan agreement with the Africa Finance Corporation and the Trade and Development Bank for Eastern and Southern Africa. The financing is now close to being finalized, with initial drawdowns expected in 2026. At the same time, the company said it has raised an additional $100 million through a combination of equity and debt, with the backing of Ethiopian investors.

Kefi executive chairman Harry Anagnostaras-Adams said the company has now secured full financing for the launch of the Tulu Kapi gold project, which it considers one of the highest-grade gold development projects in Africa. He said the company is moving into the development phase in Ethiopia, with first production expected in 2027 and full-capacity output targeted for 2028.

Through Tulu Kapi, Kefi Gold and Copper aims to develop a mine capable of producing 164,000 ounces of gold per year over the first seven years of operation. While construction is described as imminent, operational details for work at the site remain limited at this stage. Given the planned production timeline, 2026 is expected to be a critical year for the project.

Aurel Sèdjro Houenou