Proactive Investors - KEFI Gold and Copper said the finance syndicate board processes for the Tulu Kapi gold mine (TKGM) development in Ethiopia are on track for final (conditional) approvals this month (May 2024).
All syndicate parties have confirmed final (conditional) approval or are targeting this month while KEFI is now targeting a beneficial interest in TKGM of 80%.
KEFI added that gold mining in Ethiopia is reviving, with construction works starting at another Ethiopian industrial-scale gold mine development, west of Tulu Kapi, and a modernisation programme commencing at the only pre-existing large Ethiopian gold mine, south of Tulu Kapi.
“On the back of wide-sweeping reforms, some of which were absolutely critical for the mining sector, as negotiated and previously reported by KEFI, the country is now striving hard to reclaim its previous long-standing ranking amongst the world's top ten growth countries,” said the statement.
KEGI added that dedicated policing has been formed for permanent presence around Tulu Kapi and the other strategic mining projects, reporting to the Prime Ministry to ensure safe working conditions for the community.
The focus remains for the Tulu Kapi Project to launch in mid-2024 and for production in mid-2026.
Harry Adams, executive chairman, commented: “Following previously reported final approvals by syndicate leaders for project debt, equity risk notes and share subscriptions to subsidiaries, we can now report further progress with those outstanding syndicate partners, such that all final approvals are on track to be received this month.
"All very exciting. In the meantime, we will escalate community consultations and preparations. All stakeholders in the community will be invited to engage for briefings to understand our requirements on all matters, ranging from safety procedures and precautions.
"Closing this US$320 million international project finance package will be a notable accomplishment in today's tough capital market conditions for the junior mining sector.”