KEFI Gold and Copper (LSE:KEFI) has completed the signing of final documentation for a US$240m loan facility to fund the development of its Tulu Kapi Gold Project in Ethiopia. This follows the arrangement of US$100m in equity financing, with the remaining US$50m component—structured through subordinated streams, royalties and Ethiopian preference shares—now in final documentation and expected to be signed in February 2026.
With US$20m of equity raised in December 2025, KEFI has already begun a number of critical on-site activities. These include compensation payments and land clearing linked to community resettlement, mobilisation of the plant construction contractor, and the start of electricity transmission works. Together, these steps mark a clear transition from financing into active project execution.
In parallel, the company is assessing the potential for an additional US$36m of non-dilutive funding. This would be used to strengthen cash reserves and support exploration and social development programmes, providing further flexibility as the project advances against a backdrop of record gold prices and supportive economic growth forecasts for Ethiopia.
While the financing milestone represents a major strategic achievement, the overall investment outlook remains constrained by KEFI’s current financial profile. The group remains pre-revenue, with ongoing losses and cash burn, and technical indicators continue to point to weak near-term sentiment. A low-leverage balance sheet offers some support, but valuation remains challenged until the project moves closer to production and cash generation.
More about KEFI Gold and Copper
KEFI Gold and Copper plc is a gold and copper exploration and development company operating across the Arabian-Nubian Shield, with assets in Ethiopia and Saudi Arabia. Its flagship project is the high-grade, high-recovery Tulu Kapi Gold Project in Ethiopia, which is positioned to benefit from strong gold prices and the country’s private sector-led economic development.
Leave a Reply