Kefi on track to finalise Tulu Kapi financing by October, MRE for Hawiah next month

28th July 2020

By: Marleny Arnoldi

Deputy Editor Online

     

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Aim-listed Kefi Minerals continues to progress talks with Ethiopian investors and international specialist mining financiers, with the aim of securing project equity ahead of closing the full financing package for the Tulu Kapi gold project, in Ethiopia, by October.

The company remains focused on achieving key targets set out in February, including to allow major site activities to start at the Tulu Kapi project and to deliver a maiden mineral resource estimate (MRE) for the Hawiah project, in Saudi Arabia, by August.

The company completed a 12 000 m diamond drilling programme at Hawiah in May, which will inform the MRE.

Meanwhile, the company aims to start gold production at Tulu Kapi in 2022.

Earlier this year year, capital expenditure, operating and financing requirements were updated and incorporated into the final 2020 Tulu Kapi plan. The total project funding requirement is now $221-million, compared with the $242-million stated in the company's 2018 annual report.

“The spot gold price is currently more than $800/oz higher than our ore reserves assumption of $1 098/oz and $600/oz higher than our base case assumption of $1 300/oz used for financing plans.”

Kefi plans to secure half of the funding through senior debt and half as project-level equity.

The project will produce about 140 000 oz/y for eight years from an openpit operation.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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