24th Jun 2015 06:52
LONDON (Alliance News) - KEFI Minerals PLC Wednesday said it has completed the definitive feasibility study for the Tulu Kapi project and said it will try to lower the initial funding cost of the project in the third quarter to " to preserve robust project economics whilst minimising equity dilution".
The definitive feasibility study is now being reviewed by the independent technical consultants to the company's financiers, which are aiming to seal an agreement on the development funding for Tulu Kapi in Ethiopia in the third quarter.
However, KEFI said it would try to lower the initial funding requirement through the tendering and procurement process, and the refinement and agreement of the funding plan with contractors and financiers.
The study has confirmed KEFI needs around USD120 million of initial funding for the project, which will be split into USD100 million of secured debt-based finance and USD20 million of equity finance. The company said it would prefer the equity financing to be at a contractor-funding level, with its second preference being at the project subsidiary level, and its least preferred choice being at the company level, it said in a statement.
"This has been a very successful quarter where we have been granted full development permitting from the government of Ethiopia, completed a scheduled equity placing, and we have now tabled the 2015 definitive feasibility study for financier review on schedule and on specification," said Chairman Harry Anagnostaras-Adams.
If funding is secured in the third quarter as planned, KEFI said it will begin community resettlement work and major site-works in the fourth quarter of 2015, followed by the commissioning of the processing plant in the fourth quarter of 2016. The overall aim is to begin gold production in 2017.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Kefi Gold & Copper