KEFI has obtained the conditional final credit committee approval for a $320m finance package from the lead lender for its Tulu Kapi Gold project in Western Ethiopia.

This follows similar approvals from other key syndicate members including lead contractors and equity parties, as well as supportive actions by the Ethiopian Government throughout 2023.

The Ethiopian Government has facilitated the project by granting exemptions from foreign exchange restrictions, committing to provide permanent security protection and approving additional lender protections.

The finance package, structured at the subsidiary level, involves syndicate members familiar with Ethiopia.

KEFI is on track for a full project launch and funding drawdown in the first half of 2024, pending the fulfilment of standard conditions precedent for such transactions.

The project’s initiation also hinges on independent confirmation of readiness from security and community perspectives, as well as final board approvals from all involved parties.

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By GlobalData

Concurrently, KEFI is working on finalising the detailed definitive documentation for signing between the project’s syndicate financiers.

This documentation is expected to solidify the financial foundation necessary for the Tulu Kapi Gold project to move forward.

In preparation for the launch, KEFI has begun mobilising in the field, engaging with local communities, briefing church leaders and providing medical assistance through the Tulu Kapi Charitable Endowment.

KEFI executive chairman Harry Anagnostaras-Adams said: “The Ethiopian Government and the lead syndicate members of our high-grade Tulu Kapi Gold project have been working hard to support our project launch.

“The government has recently made strong commitments including approving country membership (a set of protections for development finance institutions) for both of our project lenders, deregulation of exchange controls, and commitment to the preparation of security and our community.

“These government initiatives have played a very important supportive role in allowing the project to move forward.”