Kefi Gold & Copper PLC on Tuesday reported that work had begun on its Tulu Kapi gold project in Ethiopia.

The London-based mining company focused on the Arabian-Nubian shield said a new main access road was under construction, linking the highway to the Tulu Kapi site.

The fact that the project is state-funded ‘significantly de-risks the overall development schedule,’ Kefi said.

The company is finalising the terms of a loan to provide debt capital for Tulu Kapi. The loan amount has increased to $240 million from the previously reported $190 million.

Kefi is also in talks with Middle Eastern and other sectoral investors to secure the remaining $30 million of a $180 million equity capital requirement.

According to the Kefi, $100 million has already been invested through historical expenditure.

The Ethiopian government and private investors have committed a combined $20 million for a 10% stake in Tulu Kapi Gold Mines SC, plus up to $30 million as gold-linked preference shares of Kefi Minerals Ltd. These will be issued upon the launch of the Ethiopian Stock Exchange, scheduled by the end of January.

In addition to Tulu Kapi, Kefi is reviewing its 15% stake in the Gulf Monetary Council and its Saudi Arabian projects, Jibal Qutman Gold and Hawaih Copper-Gold. The company previously shared a valuation estimate for the latter of around $301 million net present value. Kefi said it has short-listed possible third-party transactions related to Jibal and Hawaih.

The company updated the estimate potential value for stockholders to 11.1 pence per share, assuming net present value at a 5% discount rate, and a gold price of $2,600 per ounce. This is an increase on the 10.50p per share potential valuation reported in November, attributed to currency fluctuations and the inclusion of Kefi’s 15% stake in the Gulf Monetary Council through assigning $80 million per ounce of gold-equivalent resources.

‘It is now timely to focus on key alliances for KEFI’s aggressive growth ambitions,’ said Chair Harry Anagnostaras-Adams.

‘We have a number of highly attractive opportunities before us and we are focused on the full launch of Tulu Kapi Gold Project, as well as finalising our other priority projects and alliances for the next stage.’

Kefi shared the update ahead of the Future Minerals Forum, which commences in Riyadh next Monday.

Kefi shares were up 0.8% at 0.48 pence each on Tuesday afternoon in London.

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