The financial support of the Ethiopian Government provides concrete evidence of its support for the development of Tulu Kapi and a guide to project value, said SP Angel.
By Ian Lyall |
For that the authorities will receive a 20% stake, which, added to the current carried investment, takes their holding to a quarter of the project.
The deal puts Tulu Kapi’s worth at US$100mln, compared with an estimated net present value of double that figure.
The operation requires a further US$100mln of funding, which should be concluded by the third quarter of this year.
Construction is expected to get underway sometime in the final three months of 2016, while plant commissioning should take place in Q4 2017.
Chairman Harry Anagnostaras-Adams said: “KEFI is delighted to have received this confirmation from the Government of Ethiopia of its commitment to invest US$20 million in the Tulu Kapi Gold Project.
“This represents an important step towards formalizing the finance syndicate, which remains on track for settlement in the third-quarter, and we are honored that the government is choosing to partner with KEFI.”
House broker SP Angel added: ” The financial support of the Ethiopian Government provides concrete evidence of its support for the development of Tulu Kapi and a guide to project value.”
Shares rose 6% to 0.54p.
Source: Proactive Investors
- A New Managing Director for KEFI Minerals in Ethiopia
- KEFI Minerals Ethiopia Scheme Undervalued, Says Edison
- Ethiopia: Government, Private Sector Step up Mining Activity
- KEFI Minerals Advancing Rapidly to Mine Development in Ethiopia
- KEFI Seeks Approval of $120m Finance Plan for Tulu Kapi Gold Project in Ethiopia
- Ethiopian Gold Mining Group KEFI Minerals is Well on the Way to Locking in Finance