(NewsDirect)
KEFI Gold and Copper PLC has made furtherprogress on its Tulu Kapi gold project in Ethiopia, crossing anothermilestone with the $320 million development budget.
Executive chairman HarryAnagnostaras-Adams discussed the complexities of raising substantialfunds in a new jurisdiction for mining, highlighting the challengesand achievements in navigating development banking and financing in afrontier market.
In an interviewwith Proactive's Stephen Gunnion, discussed the complexities ofraising substantial funds in a new jurisdiction and mentioned thenormalcy of the project's development pace, considering thepioneering nature of their work in Ethiopia, including overcomingregulatory obstacles and securing protections necessary for mobilizingthe required capital and personnel.
Anagnostaras-Adams also elaborated on recent regulatory changesthat have positively impacted the project's finance costs byaltering the debt-to-equity ratio. Initially facing a closed economywith a 50% borrowing limit, KEFI Gold and Copper secured a majorconcession allowing a 70:30 ratio, which was further improved to 80:20by the National Bank of Ethiopia. This adjustment enables the use ofmore lower-cost capital, significantly benefiting the project.
Looking forward, KEFI Gold and Copper aimsto finalize agreements and refresh key components of the project bythe end of May, with a final model and schedule set by the end ofJune. This includes updating the plant costing, property surveys forresettling communities, and adjusting the mining contractor's riseand fall clause for inflation.
The company is coordinating withevery syndicate party across various countries to ensure alignment andadherence to the timeline, emphasizing the collaborative effort tonavigate development funding in Ethiopia.
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