Shares of KEFI Gold and Copper Plc (LON: KEFI) today surged 34% after revealing that it has signed non-binding term sheets to complete the US$221 million consortia for Project development funding for its flagship Tulu Kapi Gold Project located in Ethiopia.
The company clarified that experienced African investors have conditionally agreed to contribute a minimum of US$40 million to the Project with KEFI’s beneficial ownership being expected to rise to 65% from the previous estimate of 45%.
The company said that it expected the Net Project Value (NPV) attributable to it to rise by 33% to 11p/share based on 65% ownership and average gold prices of $1,700 an ounce.
The above estimate excludes all other KEFI assets, especially the Hawiah copper-gold-zinc-silver and Jibal Qutman gold deposits discovered in Saudi Arabia.
KEFI confirmed that first production remains on track for Q4 2022 with the goal of boosting average gold production from the initial 140,000 ounces per year to 190,000 ounces annually within the first 3 years.
Commenting, Harry Anagnostaras-Adams, Executive Chairman of KEFI, said: “I am delighted that we continue to attract strong African experienced participants in our Tulu Kapi funding structure in a manner that enables KEFI and its Government Partners to increase their beneficial ownership, for KEFI to c.65% of the Tula Kapi Project.
“The refined structure set out today is in accordance with the overall plan already approved by TKGM and the regulatory authorities and now includes investment from a well-capitalised and internationally prominent local investor and a global mining finance specialist.”
Kefi share price
Kefi shares today rallied 34% to trade at 2.99p having risen from Wednesday’s closing price of 2.23p.