Kefi reports progress in Ethiopia, Saudi Arabia

22nd Jul 2024 11:52

(Sharecast News) - Kefi Gold and Copper reported recent advancements at the Tulu Kapi Gold Project in Ethiopia in an update on Monday, where the early works programme, initiated in May, was progressing well.

The AIM-traded firm, which was holding its annual general meeting, said the programme was set to continue until September, preparing the project for the finalisation of a $320m project finance package.

Major works were expected to start in October, with production set to start in mid-2026.

Tulu Kapi, designed to international standards, would be Ethiopia's first large-scale mining project in three decades, and was projected to become one of the country's largest export generators.

In Saudi Arabia, Kefi's GMCO joint venture was emerging as a key player in the mining sector, the board added.

The company's projects, Jibal Qutman and Hawiah, were receiving robust regulatory support amidst the Saudi government's initiatives to attract international expertise.

Extensive drilling over the last year had refined known mineral resources and discovered new deposits.

Feasibility studies were underway to determine optimal development strategies and the potential scale of the projects.

GMCO's exploration efforts also extended to four additional project areas within their numerous licences.

The board said the past year had seen significant progress for Kefi, leveraging its early-mover advantage in the Arabian-Nubian Shield.

It said it had assembled top-tier teams, forged strong partnerships, and established banking relationships and contractor alliances to advance its mining projects in Ethiopia and Saudi Arabia.

The favourable shift in both host countries' policies and record high metal prices presented an opportunity for Kefi to push forward with its developments.

"I, and my fellow Kefi board members, are committed to delivering a substantial return on investment deserved by our patient Kefi shareholders and I would like to take this opportunity to thank all of Kefi's stakeholders for their continuing commitment and support," said executive chairman Harry Anagnostaras-Adams.

"The coming months are pivotal for Kefi, particularly with our Tulu Kapi project in Ethiopia, and I look forward to the exciting next stages in the development of our projects."

At 1147 BST, shares in Kefi Gold and Copper were down 6.32% at 0.64p.

Reporting by Josh White for Sharecast.com.