The KEFI Gold and Copper Plc (LON: KEFI) share price rose 9.84% after revealing that all the precedent financing conditions requiring input from the Ethiopian Government had been met. The project is set to proceed once its funding partners are ready.
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Investors cheered the news, as evidenced by the rally in KEFI shares earlier today before it retraced some of its gains. The finalisation of the government requirements opens the path for Tulu Kapi’s backers to proceed to final committee and board reviews and approvals for the US$390 million Project finance package.
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The financing package was unveiled on 27 April 2023, and US$370 million of the same has already been covered by arrangements at the Project and subsidiary level with first-tier banks, contractors and investors, including the Ethiopian Government at both the Federal and the Regional levels.
The remaining US$20 million of the funding package has been allocated to a specific set of parties to be finalised and structured over the next few months as all the standard procedural conditions precedent are completed to enable funds to flow.
The final details must follow the law’s strict requirements and World Bank IFC Performance Standards. KEFI has now resolved all major conditions precedent remaining with the Ethiopian Government for the Project financing.
The first significant condition precedent was for the two banks funding the syndicate to receive the same rights and protections in Ethiopia, which was achieved in AMrch 2023 when Ethiopia granted African Finance Corporation country membership.
The second condition was establishing a permanent security force around Tulu Kapi to ensure the project’s construction could proceed unhindered, which was met in April 2023.
Harry Anagnostaras-Adams, KEFI’s Executive Chairman, commented: “Today’s announced progress with the Ethiopian central bank is the third significant breakthrough in as many months. This set of supportive Government initiatives clears the way for the launch of Tulu Kapi and reinforces the recent turnaround of the working environment in Ethiopia. KEFI has assembled a first-class international project finance syndicate which is now focused on final definitive documentation for this US$390 million transaction.”
*This is not investment advice.
KEFI Gold share price.
The KEFI Gold share price rose 9.84% to trade at 0.67p, from Friday’s closing price of 0.61p.
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