Proactive Investors - KEFI (LON:KEFI) said all outstanding members of its funding syndicate for the Tulu Kapi gold mine in Ethiopia have said they will go to their respective committees to approve the proposed transaction this month.
The Ethiopian Federal Government has also reaffirmed its equity capital investment has been fully documented, committed and already partly invested, according to the statement.
Kefi added the US$320 million financing plan has been refined to comprise US$190 million from lead-lender Southern and Eastern Africa Trade and Development Bank and co-lender Africa Finance Corporation; US$40 million from share issues by KEFI subsidiaries remains from the Federal and Regional Government and US$70 million Equity Risk Notes remain largely from local subsidiaries of multinational corporations
In addition, having received the recent clarifications, the subsidiary-level equity-ranking product-linked funding piece of US$20 million can now also be finalised.
Harry Adams, executive chairman, commented: "This multi-party subsidiary-level financing is now advancing on the back of the Government commitments finally received in October, triggering the lead-lender to quickly process its approval in December 2023 and now all other stakeholders triggering their respective flow-on processes.”