By: Creamer media

Credit committee approval has now been granted by both banks. Finalised terms and conditions have been set for the expanded project finance secured loan package of $240-million.

Ethiopian country membership has been approved for the second co-lending bank and is now being ratified.

The requisite internal board ratifications are in process, in sequence with the other formalities of signing, the payment of success and commitment fees and the issuance notices to proceed to the various contractors and service providers.

The remaining administrative procedures are proceeding in parallel with detailed definitive agreements being assembled by March 31.

Equity-capital preparations at subsidiary-company levels are advancing in parallel with the timetable.

Government investment is proceeding as planned.

Sophisticated African investors are assembling for the product offering of the Kefi Minerals preference share denominated as a local currency investment offering dollar-linked protection for both principal and yield along with a gold-upside kicker attaching to gold prices realised by the project above the gold-spot price prevailing at the time of issuance.

“The Tulu Kapi gold project is proceeding as anticipated, with the approvals received from banks and widespread government support, and for detailed documentation to be ready March 31, 2025, to trigger full launch as soon as possible thereafter.

“We are accordingly now triggering launch steps with community, contractors and financiers,” says Kefi founder and executive chairperson Harry Anagnostaras-Adams.

“It is fortuitous that current timing coincides with gold being at record highs, the recent floating of the local Ethiopian currency and the consequential investor interest in protection against further devaluation with the sharp resurgence of economic growth in Ethiopia and the inception of major economic reforms including the recent launch of Ethiopian Securities Exchange.

“The development of Tulu Kapi's regulatory framework and procedural detail have needed continual refinement for this first such transaction in Ethiopia. Be that as it may, we have succeeded in bringing Tulu Kapi to the starting block with a bespoke project syndicate of government, leading African banks, contractors and sophisticated investors,” he explains.

“This is a powerful syndicate for the project’s long-term protection and optimisation. And we are now confident that all external factors support our plan to assemble all definitive documentation by March 31, and to then expedite drawdowns and major works,” Anagnostaras-Adams adds.