On 6 December, KEFI (LON:KEFI) announced that it had arranged for project equity funding of the Tulu Kapi gold mine project in Ethiopia for both Q119 and Q219, and that activities are progressing to this end, including government indications that the handful of outstanding permits are still expected to be granted in December to allow for community resettlement and development. The announcement also reports completion of the project due diligence for the US$160m bond/lease proposal (see previous notes) and follows KEFI’s announcement, on 28 Nov, that it had entered into an up to £4.0m secured convertible loan facility to underpin parent company working capital as it triggers the development of the project in Q119
Overall funding plan
While KEFI continues to assemble the majority of funding for development of Tulu Kapi at the project level, it has steadied the parent company’s working capital capacity ahead of the project launch. It has also further augmented its working capital flexibility by arranging to pay some service providers in equity at 2p/share.
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