🌍 Exciting Update - Initial Approval for Increased Bank Loan on Tulu Kapi Project Secured. 🌍
We’re pleased to announce significant progress for our Tulu Kapi Gold Project in Ethiopia:
🔸 Loan Facility Expansion: Proposed bank loan facilities have increased from US$190 million to US$240 million.
🔸 Initial Approval: A second co-lending bank has granted initial committee approval for the expanded loan, with final approvals expected soon.
🔸 Strong Project Potential: With Ethiopia reclaiming its place among high-growth economies, our Tulu Kapi district Early Works program is showing clear readiness for Major Works.
🔸 Promising Returns: At US$2,100-2,600/oz gold price, Project NPV is estimated at 6.9 to 10.5 pence per share, significantly above the current share price.
🔸 Local and Regional Investment: Facilitating participation at both public and private sector levels in Ethiopia, aligned with local investment conditions.
This is a testament to KEFI’s diligence and the supportive alignment of both regulatory frameworks and rising metal prices across Ethiopia and Saudi Arabia.
KEFI Executive Chairman, Harry Anagnostaras-Adams commented:
"Today's announcement that our project finance banks are looking to increase the Tulu Kapi project debt offering from US$190 million to US$240 million is testament to KEFI's focus, diligence and tenacity - and that the fact that the various stars are aligning around our Tulu Kapi project in Ethiopia, as they also have around our emerging projects in Saudi Arabia. The past two years has seen regulatory reforms in both countries, our flagship Tulu Kapi project being readied for development with the two Saudi advanced projects following, and metal prices having taken off. Tulu Kapi's high grades and high recoveries offer the potential to repay all project finance debt from the estimated net cash flows of the first full year of production, at US$2,600/oz gold price. Moreover, at US$2,100/oz to 2,600/oz gold, Project NPV to KEFI shareholders is 6.9 to 10.5 pence per share, 12-17 times the current share price, ignoring our other assets."
Read more here:
https://lnkd.in/egjFqxhh
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