**Summary**
KEFI Gold and Copper PLC has announced the full launch of its Tulu Kapi Gold Project in Ethiopia, backed by a comprehensive US$340 million funding package comprising US$240 million in long-term debt and US$100 million in equity risk capital. The company is also undertaking a US$20 million equity fundraise (the "Fundraise") to cover initial launch costs, including repaying working capital facilities and transaction fees. The fundraise includes a retail offering of up to £1 million.
**Key Highlights**
1. **Funding Package**
**Debt** US$240 million in long-term project debt, with detailed facility agreements in circulation for signing.
**Equity** US$100 million assembled through various sources
US$20 million from the Ethiopian Government (12% equity in Tulu Kapi Gold Mines S.C.).
US$26 million from redeemable preference shares (KEFI Ethio Prefs) targeting Ethiopian investors.
US$30 million via Gold Streams from mining specialist royalty funds.
US$10 million from KEFI’s previous capital injections.
US$20 million from the current Fundraise.
2. **Fundraise Details**
Issuance of 1,153,846,143 new ordinary shares at 1.3 pence per share, raising approximately £15 million (US$20 million).
US$5 million of the proceeds cover transaction costs, reducing net equity-risk-capital to US$100 million.
A retail offering of up to £1 million is open to eligible retail shareholders.
3. **Project Ownership**
KEFI is expected to retain approximately 83% ownership of Tulu Kapi Gold Mines S.C. after the Ethiopian Government’s equity investment.
4. **Financial Projections**
Strong net cash flow potential for shareholders, with estimates showing
Annual net cash flow of US$151 million to US$330 million over the first 7 years (at gold prices of US$3,000 to US$5,000 per ounce).
NPV (5%) of US$858 million to US$1,939 million at the start of production.
IRR of 112% to 200%.
Debt service coverage ratio of 6-to-1 to 11-to-1, well above the minimum requirement.
5. **Additional Capital**
Ongoing negotiations may secure an additional US$30 million in non-dilutive equity risk capital, with US$15 million set aside for cost overruns and US$15 million for exploration in Ethiopia and Saudi Arabia.
6. **Project Timeline**
First production is expected in 2027with full production from 2028.
7. **Admission and Voting Rights**
New ordinary shares will be admitted to trading on AIM around 30 December 2025.
Total issued share capital post-admission will be 10,681,603,909 ordinary shares, each with one voting right.
**Management Commentary**
KEFI’s Executive Chairman, Harry Anagnostaras-Adams, emphasized the significance of the full funding package, highlighting the project’s high-grade potential and the company’s alignment with government, local investors, and industry partners. He expressed confidence in KEFI’s future, particularly with the concurrent development of projects in Ethiopia and Saudi Arabia.
**Important Notices**
The announcement contains forward-looking statements and is restricted from distribution in certain jurisdictions, including the United States, Australia, Canada, South Africa, and Japan. The new ordinary shares are not registered under the U.S. Securities Act and may not be offered or sold in the U.S. without applicable exemptions.
**Conclusion**
KEFI’s Tulu Kapi Gold Project is fully funded and poised for launch, with a robust financial structure and strong growth prospects. The company is well-positioned to deliver significant value to shareholders while advancing its pipeline of projects in Ethiopia and Saudi Arabia.