JOHANNESBURG (miningweekly.com) – The residual funding needed to complete the development of Aim-listed Kefi Minerals’ Tulu Kapi gold mine, in Ethiopia, has narrowed further to $24-million, from the $32-million still required as at July 17.
Kefi last month announced that it had signed the terms for $135-million in funding with Oryx Management, reducing the residual funding requirement from $160-million to $32-million.
The company on Thursday noted that the further reduction in the financing requirement was based on refinements to planned capital expenditure and contingency provisions.
Kefi is seeking to source a portion of the residual financing requirement from a separate finance facility against ore stockpiles, which are estimated to include $15-million of contained gold at start-up of production, and a portion from project-level equity, negotiations for which have started.
The company plans to optimise the finance mix in consultation with the project syndicate, in particular the government of Ethiopia and principal financier Oryx, during the fourth quarter.
When in operation, Tulu Kapi is expected to produce about 120 000 oz/y of gold.
Edited by: Creamer Media Reporter
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