- KEFI Minerals has selected its preferred senior secured lenders for the Tulu Kapi gold project in Ethiopia. The lenders, a leading African mining bank and a leading African development bank, have indicated their non-binding terms for the project finance for Tulu Kapi, which include the following key features:

· Senior secured project loans of US$60 million, with average tenor of six years;

· Security to be on a first-ranking basis, shared pari passu;

· Gold hedging of 100,000oz (out of total Ore Reserves of 1 million oz);

· Normal conditions precedent, pricing and covenants for facilities of this nature; and

· The balance of capital requirements be sourced from product-linked gold finance and equity capital.

Finance director John Leach said: "KEFI's successful overhaul of Tulu Kapi has rendered it a robust project. The selection of the preferred banks, the backing of the Government of Ethiopia as project partner and the quality of the emerging syndicate of stakeholders serves to reinforce the Board's confidence as we move towards commencing production in 2017."

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