“All systems go” for KEFI, as documentation for $240 million in banking loans completed

KEFI Gold and Copper (KEFI ) has confirmed that the final documentation with respect to its US$240 million loan facility has been fully signed.

The money will be used in the ongoing development of the company’s Tulu Kapi gold project in Ethiopia, where the preliminary stages of construction are already underway. 

This means the funding process is almost complete. Final documentation for the remaining balance of the US$100 million equity risk capital - being US$30 million of subordinated streams and royalties and US$20 million of Ethiopian preference shares – is now underway. 

Signing of the fully integrated final funding package remains on track for February 2026.

The company is also considering additional offerings of this type, which are not dilutive at the PLC or asset level, totalling $36 million. This money could potentially be used to boost cash reserves, which in turn would also fund exploration and social programmes.

Following the placing of US$20 million in December 2025, which completed the balance of the equity funding required for project launch, a number of works have commenced or advanced this month.

These include compensation payments for community resettlement, land clearance for housing construction, the mobilisation of the plant construction contractor, and the commencement of electricity transmission works.  

"It is all systems go in Ethiopia,” said KEFI’s chief executive Harry Anagnostaras-Adams.

“I am delighted to confirm the banking syndicate have now signed binding final documentation for the agreed US$240 million debt funding. We expect any outstanding documentation to be entered into on the identified and agreed equity component to be finalised and entered into next month, in turn enabling the balance of funds drawdown from the US$100 million equity component. As previously stated, whilst committed, the company will draw the debt funding later in the year which minimises debt servicing payments. We are delighted to be moving into full financial close and drawdown of funding at a time when the gold price is trading above US$4,700 per ounce.”

View from Vox

KEFI’s timing looks serendipitous. With the gold price continuing to breach new highs, there’s never been a better time to be moving into production. There remains execution risk, of course, but even that has been significantly mitigated by the huge margins that are now being offered by Tulu Kapi, given that gold is trading at above US$4,700. KEFI has additional funding options, and a project with an NPV that now runs in the billions. It should be a banner year.