KEFI Gold and Copper (AIM: KEFI) has confirmed it has secured $240mn in project debt financing for its flagship Tulu Kapi Gold Project (TKGM) in Ethiopia, marking a major step toward full financial close and the long-awaited launch of construction.

The company said the loan facilities — signed by both co-lenders, the African Finance Corporation (AFC) and the Eastern and Southern African Trade and Development Bank (TDB) — formalise commitments for the debt portion of the project’s $340mn development cost. The remaining $100mn equity component has received investment proposals exceeding the target amount, mainly from local Ethiopian investors and African specialist funds, though final equity close is still pending.

Construction is expected to start following full equity closure, targeted for Q4 2025, with site-preparation and early-works activities already under way, financed through KEFI’s working capital and bridging facilities. The Tulu Kapi Gold Mines Share Company (TKGM) — a joint venture between KEFI (80%) and the Government of Ethiopia (20%) — holds the mining licence for the project in western Ethiopia’s Oromia region.

Executive Chairman Harry Anagnostaras-Adams said the financing milestones represent a turnaround for KEFI after years of delays caused by security conditions and regulatory approvals. “Tulu Kapi is set to be a showcase for international project finance in Ethiopia,” he said, noting its potential to boost Ethiopia’s gold-mining sector alongside established operations such as Legadembi and Kuriftu.

Designed for an initial production capacity of about 140,000 ounces of gold per year, the project is being developed to international ESG standards with local community engagement, environmental safeguards and transparent governance structures. KEFI continues to work with Ethiopian authorities to finalise local equity participation and community infrastructure programmes.

Beyond Ethiopia, KEFI is advancing two gold-copper projects in Saudi Arabia — Hawiah and Jibal Qutman — as part of its strategy to develop a diversified pipeline of assets across the Arabian-Nubian Shield.