3rd Feb 2016 09:15
LONDON (Alliance News) - KEFI Minerals PLC on Wednesday said its Tulu Kapi gold project in Ethiopia is on track to begin producing in 2017, after the company agreed financing with two lenders.
The deal with the lenders, identified only as a leading African mining bank and a leading African development bank, includes senior secured project loans of USD60 million, with average tenor of six years, among other features.
"The selection of the preferred banks, the backing of the government of Ethiopia as project partner and the quality of the emerging syndicate of stakeholders serves to reinforce the board's confidence as we move towards commencing production in 2017," Finance Director John Leach said.
The project contracting arrangements reported in October 2015, combined with the most recent project cost estimates, together amount to about USD120 million, the company said.
Shares in KEFI were up 5.9% at 0.339 pence Wednesday morning.
By Samuel Agini; [email protected]; @samuelagini
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