Business
Central Bank Approval for Project Finance Package
Central Bank Approval for Project Finance Package.
About this update from Kefi Gold And Copper Plc
[{"type":"text","content":"\n \nRNS Number : 4122B KEFI Minerals plc 06 June 2019 \n\n6 June 2019\nKEFI Minerals plc\n(\"KEFI\" or the \"Company\")\nCentral Bank Approval for Project Finance Package\n \nKEFI Minerals (AIM: KEFI), the gold exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, is pleased to announce that it has received the last remaining federal government consent for the financing and development of the Company's Tulu Kapi Gold Project (the \"Project\") from the National Bank of Ethiopia, the Ethiopian central bank. The National Bank of Ethiopia has now provided its formal approval of the terms of the proposed full Project finance package.\nAs background:\n· the Ethiopian central bank held back this long-anticipated formal confirmation until it had also simultaneously approved a policy directive for general public application;\n \n· the approvals now received as regards the terms of the proposed full Project finance package include the right to use leasing as a form of finance, a debt/equity capital ratio of up to 70/30, recognition of historical expenditure in the calculation of the capital ratio, the right to use gold price hedging and the application of market-based long-term fixed interest rates;\n \n· this set of central bank and other approvals clears the way for KEFI's Project-level partners to subscrible to TKGM shares for their combined US$58 million (Ethiopian Birr equivalent) equity investment and also for the mandated US$160 million infrastructure financing. Whilst waiting for this central bank confirmation letter and policy directive, the Company has already obtained the two other third party approvals required by the various interlinked arrangements:\n \no KEFI's secured working capital financier, Sanderson Capital Partners Limited, has agreed to security sharing arrangements with ANS Mining Share Company (\"ANS Mining\"), KEFI's private-sector Project equity partner in Tulu Kapi Gold Mines Share Company (\"TKGM\"). Such short term security arrangements fall away on the closing of full TKGM Project financing and, in the meantime, facilitate KEFI's working capital arrangments and the Project equity funding of the first part of the 24 month Project develop...