The UK gold exploration and development company, KEFI Minerals, has raised an additional investment capital of GBP 3.7 million for the development of the Tulu Kapi gold mine in Western Wollega, in the Oromia Regional State.
In a statement sent to The Reporter, KEFI Minerals said it managed to raise the additional capital of 3.7 million pounds conditionally through a placing new ordinary shares. According to KEFI, investors in the placing include RAB Capital, a prominent UK special situation institutional investor who will hold 236,058,823 shares, representing 12.6 percent of the enlarged ordinary share capital of the Company following the Placing. RAB Capital is viewed as a long-term shareholder and have been granted a right to appoint a director to the board of the Company for as long as RAB Capital’s interest remains at 10 percent or above.
The Tulu Kapi large scale gold mine development project financing is estimated at 260 million USD. The start of full gold production at Tulu Kapi remains targeted for 2022.
Harry Anagnostaras Adams, Chairman of KEFI Minerals commented, “I would like to express my gratitude for the support shown by both existing and new investors, especially to RAB Capital who anchored the capital raise and have taken a significant equity stake,” Adams said. The interest in this Placing, in what are difficult times globally as a result of the COVID-19 pandemic, stands KEFI in promising financial shape and highlights the upside offered by its asset base. The whole consortium is focused on closing the full Project financing in October 2020 and the Government in Ethiopia has supported our efforts to see that the Project can proceed without delay and to high international standards,” he added.
Adams said Tulu Kapi is the first modern mine development in Ethiopia for decades. “We could not ask for a more committed community and Government. This is a national priority and will be the largest single export generator for Africa’s highest growth country,” he said.
Samuel Urkato (PhD) the minister of Mines and Petroleum is satisfied with KEFI’s effort to develop the Tulu KAPI gold mines. “They have been doing a commendable job so far. They are mobilizing additional funds,” Samuel told The Reporter. “We hope that they will develop the mine and launch production as per the schedule,” he added.
Development of the Tuku Kapi gold mine project is expected to bring in 500 jobs. The gold mine has been estimated to generate over one billion dollars from just initial open pit operations alone.
In May 2017, KEFI Minerals and the Ethiopian Ministry of Finance established a share company called Tulu Kapi Gold Mines Share Company Limited in which KEFI owns 75 percent shares while the Ethiopian government owns the remaining 25 percent of the company.