KEFI Minerals PLC's shares surged on the London Stock Exchange on the company announcing it raised the remaining funds for the construction of the Tulu Kapi gold project in Ethiopia.
At market open June 11, shares traded at 3.40 pence apiece and then rose as high as 4.45 pence following the news. The shares were trading at 4.24 pence at the time of writing.
The company said it had sold a 30% stake in its wholly owned Ethiopian unit to a local investment syndicate. The syndicate agreed to invest US$30 million.
Upon closing of project finance, the ownership of the Tulu Kapi project would be 23% by the Ethiopian government and 77% by KEFI's Ethiopian subsidiary.
"KEFI has now assembled the proposed full project funding consortium including contractors, equity and non-equity capital," the company said in a statement.
The gold project is now waiting on the government approval and the completion of due diligence and formal documentation.
