By: Creamer media

The company explains that this is being funded from its existing cash resources following the recent capital raise and that the company will be reimbursed from the drawdown of the broader project funding package.

The community resettlement is being implemented in collaboration with the Ethiopian government in compliance with World Bank International Finance Corporation performance standards. 

Kefi says this step is a little ahead of the project schedule, reflecting the current drive to launch full development as soon as possible and the commissioning of gold production in the second half of 2027.

This latest project development was announced at the Investment in Ethiopian Mining Forum at the Ethiopian Embassy in London, co-hosted with the British Embassy of Addis Ababa and Kefi, held on the evening of July 15. 

Kefi executive chairperson Harry Anagnostaras-Adams notes that, in mid-2022, the project syndicate formally agreed to prepare for project launch following the lifting of the Ethiopia state of emergency earlier that year. 

At the time, he says, the company agreed and published three major conditions precedent: installation of security, exemption from exchange controls and Parliamentary ratification of both of its banks.

Anagnostaras-Adams notes that the last of the three major conditions were met in May.

“We are now pressing forward accordingly and appreciate the support we receive from the local community and the government at all levels to complete the remaining administrative tasks so that we can proceed with all development tasks leading to commissioning of production in 2027.”

He notes that Caledonia has also recently built the initial security and construction camps and almost completed a new access road.

He says project finance continues to come together at the subsidiary level in preparation for all the parties to sign detailed definitive documentation, targeted for end-August.

"At this exciting time for Kefi. we have also seen major international gold investment institutions become Kefi shareholders, including Ruffer Gold, Konwave/Gold 2000 and Phoenix Gold Fund. 

“The next few weeks are expected to deliver more material milestones and enable the full launch of Tulu Kapi. I look forward to providing further updates as appropriate,” says Anagnostaras-Adams.