KEFI Minerals has reported that it is likely to fund the whole of the US$120 million required to build a mine at its 100%-owned Tulu Kapi gold project, in Ethopia, at the project level through a combination of debt, gold streaming and equity funding as well as the participation of the Government of Ethiopia, which will fund up to US$20 million of infrastructure (specifically the public road and electricity connection) in exchange for an increased share of project equity.
The mine, which is due to commence production in 2017, will use contractor mining for the open pit with processing by conventional CIL at a revised rate of 1.5 Mt/y (the June 2015 feasibility study targeted a planned production rate of 1.2 Mt/y). Accordingly, the mine is now expected to produce 100 koz/y of gold at a projected average All-in Sustaining Cost (AISC) of US$760/oz over a 10 year life of mine.
Ethiopian Government to participate in funding of KEFI’s mine: KEFI