news17 May 2020 21:33
NewsKEFI Minerals Continues Development Of Projects; Cuts Costs Amid Virus(Alliance News) - KEFI Minerals PLC on Thursday said it was focused on its projects in Ethiopia ...
Alliance News15 May, 2020 | 12:00PMEmail Form
(Alliance News) - KEFI Minerals PLC on Thursday said it was focused on its projects in Ethiopia and Saudi Arabia during the first quarter of 2020.
The gold exploration & development company said it is focused on two targets during the lockdown period: allow major site activities to start for Tulu Kapi gold project in Ethiopia from October and to deliver a maiden mineral resource for the Hawiah project in Saudi Arabia in mid-2020.
On Monday, KEFI arranged an equity placing for GBP3.7 million to maintain Tulu Kapi project preparations despite the challenges created by Covid-19, including the delays in project-level equity funding from the Ethiopian private sector.
The placing proceeds will provide KEFI with the funds to enable the closing of the USD260 million project financing of Tulu Kapi.
In addition, KEFI said it has reduced its short-term expenditure due to Covid-19. This includes diluting from 38% to 34% of Saudi joint-venture company Gold & Minerals Ltd by not contributing its pro rata share of expenses.
The KEFI board and senior executives, meanwhile, decided not to draw any salaries in the year to date and implement salary reductions by senior management of 25% from the start of 2020.
Turning to Hawiah copper-gold-zinc-silver exploration prospect, KEFI said drilling continues at the site and the current phase will be completed later in May. The results will then be assessed with a view to reporting a maiden mineral resource in mid-2020 and conducing a preliminary economic assessment.
"The current gold price has highlighted the strong investment case for Tulu Kapi to both investors and the Ethiopian government. The outlook is for the gold price to continue to increase as interest rates remain near zero and Covid-19 responses increase government debt to unprecedented levels," said KEFI Chair Harry Anagnostaras Adams.
He added: "We are also encouraged by the results to date of our ongoing drilling programme in Saudi Arabia, which has encountered drill intercept grades of up to 5% copper-equivalent this year."
KEFI shares were trading 8.1% higher on Friday in London at 0.81 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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