KEFI Minerals - Tulu Kapi project started and financings improved

Since our last note, KEFI Minerals has achieved a number of key development milestones and prepared the TKGM consortium and its own balance sheet for: 1) triggering project development in January 2020 starting with government funded off-site works; 2) the full repayment and cancellation of all convertible loan facilities through a set of financings announced on 17 December 2019; and 3) receipt of all permits and internal government administrative requirements required to trigger offsite development. It has also selected a more attractive bank loan proposal to fund capex compared to the previous bond lease proposal, closed first project equity (from the government) and started development offsite. The next milestones for Tulu Kapi are the closing of private sector project equity and starting on-site development activities. On 17 February 2020, KEFI announced the approval of the TKGM shareholders for these two steps to now proceed to the next steps of closing.