The boss of KEFI Minerals PLC (LON:KEFI) has hailed the “transformational” first half of the year as the gold explorer moves towards the development of its Tulu Kapi gold project in Ethiopia.
KEFI has largely focused its efforts on securing the funding and agreeing the works schedule at the project during the opening six months.
The AIM company agreed a US$135mln finance package with infrastructure specialist Oryx to build the bulk of the mine slightly after the period end in July
READ: KEFI tees up US$135mln finance package
With that package in place, KEFI just needs to find another US$24mln or so to fund the project completely. It added that “several proposals” are currently being considered.
KEFI and the Ethiopian government launched a new company – Tulu Kapi Gold Mine Share Company (TKGM) to hold the project, of which KEFI will own between 75-80%.
The new company is currently working on securing the necessary permits, sorting the site infrastructure and figuring out the compensation due to landholders in the local area.
Busy second half planned
"The first six months of 2017 and subsequently has been a transformational period for KEFI,” said executive chairman Harry Anagnostaras-Adams, said in a statement.
“We have made significant progress at Tulu Kapi, agreeing with our partners both the execution plan to close the required financing and the project works schedule.
"The rest of 2017 is expected to be equally busy as we work to close the Project financing and move towards development.
For the six months to 30 June, KEFI reported a loss before tax of £3.56mln and ended the period with £1.6mln (2016: £0.4mln) after it raised £5.62mln in March.
READ: KEFI receives £2.5 mln VAT refund, sets up preliminary field work in Ethiopia
Shares were unchanged at 4.5p in early deals.