(Alliance News) - Kefi Gold & Copper PLC shares surged on Monday following the withdrawal of rebel militias in Ethiopia, where the company has gold exploration and development projects.
Shares in Kefi were up 20% at 1.04 pence on Monday morning in London following the update. The stock remains down 45% so far in 2021.
The Cyprus-based gold and copper exploration and development company said the withdrawal of rebel militias was a "turning point" in the military conflict and that, as a consequence, Kefi is "optimistic" that peace will soon be restored in Ethiopia.
Kefi added that diplomatic efforts recently have been intensified in the country, with mediation now backed by the African Union and the United Nations.
Kefi's project teams had remained on the ground throughout the conflict, preparing for the launch of the Tulu Kapi gold project. The syndicate members of the project have reaffirmed they intended participation as once conditions allow.
Executive Chair Harry Anagnostaras-Adams said: "We are especially happy for our host country Ethiopia and its overwhelmingly peace-loving citizens. We deeply thank our personnel, our community and other stakeholders for working so tirelessly during the challenging times of 2021 in Ethiopia which now show real promise of being put behind us. It is also wonderful to hear that many of the company's Ethiopian friends and associates living in other countries are planning to spend Christmas in Ethiopia celebrating with their extended families the expected imminent resolution of the internal conflicts.
"In addition to our operations in Ethiopia, our team on the ground in Saudi Arabia has made significant progress in adding value to the company's assets this year, completing approximately 30,000 metres of drilling, along with a range of tasks within the preliminary feasibility study. An updated mineral resource estimate for our Hawiah copper-gold project remains on track to be reported later this month."
By Heather Rydings; heatherrydings@alliancenews.com
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Kefi Gold (KEFI)