5th Aug 2019 16:24
(Alliance News) - KEFI Minerals PLC on Monday said it has restructured its working capital convertible facility and entered a new loan and has entered talks for private equity investment.
So far, GBP900,000 has been drawn from the gold exploration and development firm's existing GBP4 million convertible loan facility, with GBP450,000 repaid so far and GBP3.1 million available for drawdown. This remaining amount has been largely replaced by a new GBP1.5 million facility.
This new loan can be drawn down at KEFI's discretion at a GBP500,000 per month rate consisting of GBP250,000 tranches. The loan is repayable in cash within two years.
Once any amount drawn under the new loans is repaid, then KEFI can draw from the remaining GBP1.6 million convertible loan if needed. The convertible loan no longer has any attached security.
The refinancing means KEFI's security encumbrances have all been released, barring "minor cash security deposits", so that KEFI has "maximum flexibility" to structure its Tulu Kapi gold project financing, with a possible larger project equity investment from ANS Mining Share Co - a private sector Ethiopian investor.
The refinancing has incurred costs of GBP207,500 to be paid through the issue of 8.5 million Kefi shares at 2 pence each plus cash costs of GBP37,500.
Operationally, local government administration in Ethiopia, where Tulu Kapi is located, has expanded. High-level committees have been created.
In Saudi Arabia, exploration is underway at KEFI's Hawiah exploration licences and a 2,500 metre drill programme is to begin next month.
KEFI Chair Harry Anagnostaras-Adams said: "I am pleased that we have restructured our working capital facilities in order to provide the company with the maximum flexibility as we move towards full development of our flagship Tulu Kapi gold project. I would like to thank the providers and other stakeholders for their complementary support and I look forward to providing regular updates as we make the anticipated significant progress with the project in the coming months.
"It is a fortuitous coincidence that Tulu Kapi development looks to kick off at the same time as exploration comes to life in Saudi Arabia on a large copper-gold target."
Shares in KEFi were down 0.7% at 1.40 pence shortly before close on Monday.
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