30th Oct 2018 11:49
LONDON (Alliance News) - KEFI Minerals PLC has secured a new financing facility from a shareholder for its Tulu Kapi gold project located in Ethiopia, the company said Tuesday.
The loan facility is worth GBP2 million, and there is also an option for a further GBP2 million.
It can be drawn down in monthly amounts of GBP450,000, and KEFI expects to fully pay back the loan at the end of the first quarter of 2019. The lender can covert half of the repayment from KEFI into shares at 2 pence each, a 14% premium to its closing price on Monday.
On Tuesday, KEFI shares were down 5.1% at 1.66p.
Managing Director Harry Anagnostaras-Adams commented: "The loan facility will expand KEFI's working capital and will allow KEFI to trigger and accelerate selected high-impact steps in the Tulu Kapi project financing, development and exploration schedule."
"It is also designed to complement the timing of cash receipts under the previously announced project funding plans, including the investment at the project level by the Ethiopian government and ANS, a syndicate of Ethiopian institutional investors. The ANS investment remains on track with the initial release of funds expected in December 2018."
ANS Mining Share Co is a syndicate of Ethiopian investors, who in September agreed to take a 23% stake, possibly rising to 29%, in Tulu Kapi for investment worth up to USD29 million.
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