Tulu Kapi gold project fully financed: What KEFI Gold and Copper (AIM: KEFI) investors should know now

KEFI Gold and Copper plc (AIM: KEFI) has confirmed that its long-anticipated Tulu Kapi Gold Project in Ethiopia is on track for full development launch by the end of 2025, following final approval of the project’s US$340 million budget. The syndicate backing the development has committed both debt and equity components, providing the financial foundation for Ethiopia’s most advanced modern gold mine.

The London-listed gold and copper exploration firm announced that the Tulu Kapi project will now move forward into full-scale execution, with pre-development activities such as community housing and infrastructure works already underway. KEFI Gold and Copper plc made the announcement during the MINTEX Ethiopia mining summit on 16 November 2025, where its Executive Chairman Harry Anagnostaras-Adams delivered a keynote presentation to an audience that included Ethiopia’s Minister for Mines, H.E Eng. Habtamu Tegegne, international financiers, local stakeholders, and representatives of Tulu Kapi Gold Mines S.C. (TKGM), the project’s operating subsidiary.

This update marks a significant milestone for both KEFI Gold and Copper plc and Ethiopia’s broader ambition to revitalise its underdeveloped minerals sector, which has historically lagged behind peers across the Arabian-Nubian Shield despite its substantial untapped geological potential.

How does the Tulu Kapi project align with Ethiopia’s mining ambitions and regional economic vision?

The Tulu Kapi Gold Project is emerging as a cornerstone of Ethiopia’s national strategy to modernise and formalise its minerals industry, which has remained undercapitalised due to infrastructure gaps, regulatory uncertainty, and regional instability. KEFI Gold and Copper plc is seeking to change that dynamic by launching a fully financed, ESG-aligned gold development in Western Ethiopia with robust production economics and local participation embedded in its design.

The mine is projected to produce approximately 140,000 ounces of gold annually with strong recovery rates. Tulu Kapi’s resource base of approximately 1.7 million ounces positions it as a mid-tier asset with potential for future underground expansion. Its life-of-mine all-in sustaining costs are expected to fall below US$1,000 per ounce, placing it among the lowest-cost new producers globally. This cost advantage provides resilience in volatile gold markets while offering significant operating margins at current spot prices, which remain above US$1,900 per ounce.

Ethiopia’s government has placed strategic importance on the Tulu Kapi development, with support from both federal and Oromia regional authorities. KEFI Gold and Copper plc’s multi-stakeholder framework is designed to align private capital with public sector goals, particularly through job creation, infrastructure development, and community reinvestment mechanisms including the Tulu Kapi Charitable Endowment Fund.

What does the final financing structure reveal about investor sentiment toward Ethiopia?

According to the latest announcement, KEFI Gold and Copper plc has now fully secured the project’s US$340 million capital requirement. Of this, US$240 million represents the debt tranche, which has received full lender approval. The remaining US$100 million-plus equity component has been oversubscribed, with commitments and proposals exceeding the targeted amount. Institutional sentiment appears to be warming to Ethiopia’s mining outlook, particularly after a period of macroeconomic reforms and increased engagement with international financial institutions.

The debt syndicate includes a mix of international and regional lenders with a focus on resource development and project finance. KEFI Gold and Copper plc did not name specific institutions in the current update, but previous disclosures have noted involvement from African development banks, specialist mining financiers, and sovereign funds.

The equity structure includes significant local participation, which has been facilitated through Ethiopian birr-denominated instruments. This allows public and private entities within Ethiopia to co-invest in the project’s upside while supporting the country’s currency capital formation agenda. KEFI Gold and Copper plc also plans to issue securities in its subsidiary KEFI Minerals Ethiopia, with a view to a future stock exchange listing in Ethiopia as capital markets evolve.

A Memorandum of Intent reflecting the full structure was signed during the MINTEX Ethiopia summit, with signatures from KEFI Gold and Copper plc, TKGM, federal and regional government representatives, lenders, sovereign wealth funds, local contractors, and the Tulu Kapi Charitable Endowment Fund. The signing formalises syndicate alignment and clears the way for final documentation and launch procedures.

What development work is already underway ahead of the full 2025 launch?

With financing confirmed, KEFI Gold and Copper plc is now accelerating site activities ahead of full-scale construction. Current works include community housing development to accommodate local populations affected by resettlement, as well as mobilisation for process plant infrastructure and supporting logistics. The company has emphasised a community-first approach, aiming to deliver parallel socio-economic benefits alongside mining revenues.

According to the project’s phased implementation plan, major construction works will commence after completion of financial close procedures, which are expected to take two weeks. The first week will focus on final optimisation of the equity capital structure, followed by the completion of definitive documentation during the second. KEFI Gold and Copper plc has set year-end 2025 as the firm target for full project launch, a deadline that now appears realistic given the current pace of progress.

The company is also exploring the deployment of excess capital subscriptions toward advancing the long-term sustainability roadmap for the region. This may include early development of the planned underground mine phase, additional resource drilling, and community-focused initiatives in health, education, and local enterprise.

How are institutional investors evaluating the stock following the project breakthrough?

Investor sentiment toward KEFI Gold and Copper plc has historically been cautious, reflecting a combination of promising project fundamentals and execution delays tied to geopolitical and financing risk. However, with syndicate cohesion achieved and financing secured, institutional watchers have noted a shift in the risk-reward equation.

Analysts tracking the AIM-listed firm have indicated that completion of financing was the last major hurdle before valuation re-rating potential could be unlocked. With gold prices continuing to trade above US$1,900 and global production from low-cost assets tightening, new entrants like Tulu Kapi may benefit from a structural supply-demand tailwind.

KEFI Gold and Copper plc’s share price has shown signs of recovery in recent sessions, with improved volume on the back of the MINTEX Ethiopia announcement. The stock has often been considered undervalued relative to peers with similar-grade gold projects, especially given its de-risked cost base and multi-jurisdictional asset platform that includes additional exposure in Saudi Arabia.

Institutional flows are expected to monitor the finalisation of project documentation closely, with particular attention to execution milestones and ESG delivery. The inclusion of sovereign funds and development financiers in the current structure provides added comfort to risk-conscious investors looking for early-stage exposure to African gold production.

What is the longer-term roadmap for KEFI beyond Tulu Kapi’s launch?

The successful launch of the Tulu Kapi Gold Project is expected to serve as a platform for KEFI Gold and Copper plc’s broader ambitions across the Arabian-Nubian Shield. The company also holds a 30 percent interest in Gold and Minerals Co. Limited (GMCO) in Saudi Arabia, which is developing the Hawiah and Jibal Qutman projects. Both assets have advanced to pre-feasibility or drilling stage and could benefit from cash flow generated by Tulu Kapi once production begins.

KEFI Gold and Copper plc’s forward strategy includes monetising its multi-asset portfolio via cash-generating production, measured reinvestment, and potentially spinning off local subsidiaries for regional listings as markets mature. The firm’s early entry into both Ethiopian and Saudi jurisdictions provides a differentiated growth profile that could appeal to investors seeking diversified commodity exposure outside of overdeveloped Western mining jurisdictions.

As capital expenditure deployment begins, KEFI Gold and Copper plc will also need to balance operational discipline with value creation for local stakeholders. The use of public-private models, coupled with sovereign alignment and ESG frameworks, has the potential to create a replicable blueprint for other mining developers entering frontier markets.

What are the key takeaways from KEFI Gold and Copper plc’s Tulu Kapi project update?

• KEFI Gold and Copper plc (AIM: KEFI) has secured full US$340 million financing for the Tulu Kapi Gold Project in Ethiopia, enabling a targeted development launch by year-end 2025.
• The US$240 million debt component has received lender approval, while equity commitments have exceeded the remaining US$100 million requirement.
• A Memorandum of Intent was signed at MINTEX Ethiopia with participation from federal and regional governments, sovereign funds, contractors, and financiers, formalizing the development framework.
• Site works have already commenced, including community housing and early infrastructure preparation, with full construction ramp-up expected following financial close.
• KEFI Gold and Copper plc plans to enable local investment through Ethiopian birr-denominated instruments and aims to list securities of KEFI Minerals Ethiopia in due course.
• The project is projected to produce around 140,000 ounces of gold annually with a low AISC, enhancing its position as a cost-effective, high-grade gold producer.
• Investor sentiment has turned more positive following the financing breakthrough, with institutional analysts highlighting reduced execution risk and upside from future Saudi assets.
• Tulu Kapi is positioned as the first modern industrial-scale gold project in Ethiopia and may serve as a launchpad for broader mining-led development in the Arabian-Nubian Shield.