Kefi Gold Share News (KEFI)

(Sharecast News) - Ethiopia and Saudi Arabia-focussed gold and copper explorer and developer KEFI announced a positive resolution to the recent security situation at its Tulu Kapi gold project on Monday, revealing that the issues involved the kidnapping of four members of the project company's workforce.
The AIM-traded firm had said in September and earlier in October that "certain security issues" had arisen during the month of September, which led to authorities requesting a suspension of site inspections and community consultations.

That meant KEFI and the project company Tulu Kapi Gold Mines (TKGM) had to temporarily pause the finance finalisation and launch of the project, to ensure that the matters were addressed.

"The particular company-specific issue, that can only now be reported following their safe release on 23 October, was the abduction of four TKGM employees and contractors, captured during inspections of traffic routes for the project," the board said in its statement.

"KEFI very much appreciates their safe and unharmed release without any conditions - all four are now reunited with their families."

The company said the incident reinforced the importance of safety for all stakeholders involved in the project, the community, TKGM and its employees and contractors, the international financiers, and other parties committed to the safety and success of the Tulu Kapi project.

"After informing the families of the release of the subject employees and contractors, TKGM immediately informed the security services, the President of Oromia, the Minister of Mines, our government partners, the President of the Ethiopian Evangelical Church of Mekane Yesus, the community, contractors and financiers."

KEFI said that in a bid to "waste no time" in restarting the project launch, TKGM had already arranged for the independent community liaison and field-safety advisers to attend its planning workshops next month to update the necessary steps for the project's launch with all government agencies involved.

The company said it had "remained eager" to proceed with the project as soon as possible, while also meeting the requirements to comply with appropriate security and other standards which it was now confident should prevent a recurrence of such an incident.

"To this end, other preparations such as legal documentation have, wherever unaffected by this incident, continued unabated.

"With this localised security issue now resolved and having been subsequently fully disclosed when it has become safe to do so, the company looks forward to working with the Ministry of Mines to ensure that it is satisfied in all respects."

KEFI said it would make further announcements as appropriate, and remained optimistic that the project in Ethiopia would still be launched this year, although with "duly refined and risk-managed" arrangements to protect all people and capital involved.

Commissioning of production was scheduled for 2023, ahead of the development of the Hawiah project in Saudi Arabia.

At 1332 BST, shares in KEFI Gold and Copper were up 11.63% at 1.17p.