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KEFI Minerals highlights further reduction in Tulu Kapi funding needs

KEFI said it is optimising the finance mix as it works towards a targeted closing in the fourth quarter
gold and US dollars
The residual funding requirement is now seen as US$24mln

KEFI Minerals PLC’s (LON:KEFI) recent deal with Oryx Management will have a massive positive impact on the funding requirements for the Tulu Kapi mine, the company has revealed.

In a stock market statement, the company highlighted that the residual funding requirement has dropped from US$289mln (a figure foreseen in January 2014) to US$32mln as a result of the Oryx arrangement and it is now seeing a further reduction to US$24mln.

The additional reduction in funding needs follows refinements to planned capital expenditure and contingency provisions.

READ: KEFI Minerals notes lifting of state of emergency in Ethiopia

KEFI noted that it is now focusing on sourcing part of the residual funding requirement from a financing facility against ore stockpiles, estimated to include US$15mln of contained gold at the start-up of production.

Negotiations are underway for the remaining requirement via project-level equity, the company added, whilst saying its preference would be to retain majority ownership and control of the project.

“KEFI intends to optimise the finance mix in consultation with the project syndicate, in particular the Government of Ethiopia and principal financier Oryx, as we approach closing targeted for Q4 2017,” it said.

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