KEFI Advances Tulu Kapi Gold Project With Full Funding Secured

KEFI Gold and Copper has reached a critical development milestone with the official launch of the high-grade Tulu Kapi Gold Project in Ethiopia, following the successful assembly of its full funding package. This achievement positions the AIM-listed gold and copper explorer to move decisively from planning into execution, confirming market and lender confidence in both the technical quality of the project and KEFI’s long-term strategy across Africa and the Arabian-Nubian Shield. With funding now secured, Tulu Kapi is firmly on track to become Ethiopia’s next major industrial gold mine.

The funding structure underpinning the project is comprehensive and carefully sequenced. KEFI completed a two-part equity raise through a Subscription and Placing, securing gross equity proceeds of approximately £8.9 million. In addition, the company has announced a retail offer aimed at raising up to a further £1 million, allowing broader investor participation in the project’s development phase. On the debt side, KEFI has formally accepted a US$240 million project debt facility, which represents the cornerstone of the construction and development financing. When combined with equity-risk capital structured to reach up to US$100 million, the project’s total potential development capital could rise to approximately US$370 million.

An important feature of the Tulu Kapi financing framework is the participation of the Ethiopian Government, which is expected to hold around a 12 percent free-carried interest in the project. This structure aligns national and investor interests while reducing upfront capital pressure on KEFI. In parallel, the company has advanced gold streaming and royalty agreements, which provide additional financial flexibility and risk diversification. These instruments support the overall funding package without excessively diluting shareholder value, a key consideration for large-scale mine developments in emerging jurisdictions.

With funding secured, KEFI plans to allocate capital toward repaying early project expenditures, advancing site infrastructure, and ensuring working capital is in place ahead of staged debt drawdowns. Early works and enabling infrastructure are fully funded, allowing construction activities to progress according to schedule. First gold production is targeted for 2027, with full-scale commercial production expected from 2028. The project’s high-grade ore and strong metallurgical recovery profile underpin expectations that Tulu Kapi will rank among Africa’s most attractive undeveloped gold assets.

Looking ahead, the successful launch of the Tulu Kapi Gold Project carries broader implications for Ethiopia and the wider African mining sector. For Ethiopia, it strengthens the country’s position as an emerging destination for large-scale, responsibly developed mining investments, potentially attracting further international capital. For Africa’s gold industry, Tulu Kapi demonstrates that well-structured financing, government partnership, and technically robust projects can progress even in challenging global capital markets. Over the long term, projects of this scale can contribute to economic diversification, infrastructure development, and skills transfer, reinforcing mining’s role as a catalyst for sustainable growth across the continent.

Mini-Glossary

• AIM-listed: A company listed on London’s Alternative Investment Market, designed for smaller, growing businesses.
• Free-carried interest: An ownership stake where one party does not pay development costs, typically held by a government.
• Project debt facility: A loan specifically structured to finance the construction and operation of a single project.
• Equity-risk capital: Investment funds that take higher risk in exchange for potential ownership returns.
• Gold streaming: A financing arrangement where an investor provides upfront capital in exchange for future gold deliveries at a fixed price.
• Royalty agreement: A contract granting an investor a percentage of future revenue or production.

Editor: Vural Burç ÇAKIR