In the deal first announced in June, an investment vehicle Arabian Nubian Shield Resources was established to represent the syndicate of financial institutions and family offices, with no one member holding more than 10% of the vehicle or having any gold mining business involvement.

Through the agreement, ANS will have the right to subscribe for up to $35 million in new shares of KEFI's Tulu Kapi Gold Mines Share Company (TKGM), in the local currency alongside the government of Ethiopia.

This will leave Kefi with a holding of 54% of Tulu Kapi, with 23% for both ANS and Ethiopia's government.

The first $9 million will be invested in September and is subject to KEFI completing the remaining due diligence on Tulu Kapi and carrying out the binding share subscription agreement.

The balance of the $30-35 million should be invested by year-end, although is subject to Kefi closing full project financing and receiving full approval from the Ethiopian government.

The funds will finance TKGM's project finance closing costs and the first phase of the Tulu Kapi community resettlement, as well as initial project expenditures.

The deals dictates that the final total investment from ANS must not go any higher than the level that keeps Kefi as Tulu Kapi's majority shareholder and ANS will be allowed to appoint two non-executive directors to TKGM's board.

Kefi managing director Harry Anagnostaras-Adams said ANS Resources was being "carefully structured to provide diversified local equity participation in Ethiopia's first modern mine development", and this approach ensured clear control by KEFI on the project, as required by the planned non-equity financiers.

"Subscription by both the government of Ethiopia and ANS Resources to project company TKGM implies a valuation of circa-$66 million to a residual KEFI holding of 54%," he said.

Kefi's shares were up 6.59% Friday at 2.18p (US2.8c).