JOHANNESBURG (miningweekly.com) – Gold exploration and development company Kefi Minerals has selected an African mining bank and the African Development Bank as its preferred senior secured lenders to fund the development of the Tulu Kapi project, in Ethiopia.
The nonbinding terms for the project finance included senior secured project loans of $60-million with an average tenor of six years, security to be on a first-ranking basis, gold hedging of 100 000 oz and the balance of capital requirements to be sourced from product-linked gold finance and equity capital.
The project contracting arrangements, combined with the most recent project cost estimates, aggregated about $120-million.
"Kefi’s successful overhaul of Tulu Kapi has rendered it a robust project. The selection of the preferred banks, the backing of the government of Ethiopia as project partner and the quality of the emerging syndicate of stakeholders serves to reinforce the board's confidence as we move towards commencing production in 2017," Kefi FD John Leach said in a statement on Wednesday.
Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
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