KEFI Gold and Copper is preparing for a robust launch in the Tulu Kapi Gold Project in Ethiopia, with key financing milestones and regulatory changes enhancing funding structures.
The development budget of $320 million, excluding a $100 million historical equity investment, has been secured at the subsidiary level. Following final approvals from the lead bank, all parties have initiated formal approval processes, including progress with the co-lending bank and local equity-capital investors.
Recent regulatory changes have improved the equity funding structure, lowering overall finance costs. These include foreign exchange exemptions, an increase in the debt-to-equity ratio from 70:30 to 80:20, and the re-investment of local currency retained earnings into new business sectors as foreign direct investment.
Within the development capital budget of US$320 million, US$100 million will be provided through the issuance of two types of Equity Risk Notes (“ERN”), one type for MNC’s with no operations in Ethiopia and another lower-cost ERN for those with accumulated retained earnings in Ethiopian operations.
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