8th May 2018 13:23
LONDON (Alliance News) - KEFI Minerals PLC on Tuesday said it has formally given consent for its bond arranger to place USD160.0 million of listed infrastructure bonds.
The bonds, KEFI said, will fund the ownership by its finance special purpose vehicle of the gold processing plant and associated infrastructure at the Tulu Kapi gold mine in Ethiopia.
The funding is conditional of USD20.0 million from the Ethiopian government, which has been committed, as well as USD30.0 million in equity currently being negotiated from third parties.
Executive Chairman Harry Anagnostaras-Adams said: "Today's formal mandating reflects that a significant part of the due diligence and documentation for the financing has been completed and the remaining aspects are advancing well. We are progressing well with preparations for the bond issue and with arrangements at the organisational and Tulu Kapi community levels.
"We remain on track for drawdown of full project finance and to trigger community resettlement and mobilisation of construction contractors at the end of the Ethiopian wet season, which is normally in September."
Shares were down 1.0% on Tuesday at 2.62 pence each.
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