28th Jun 2019 14:46
(Alliance News) - Kefi Minerals PLC said Friday it has immediately taken a number of actions with the Ethiopian government to tighten security measures at its Tulu Kapi gold project.
Shares in Kefi Minerals were down 15% in afternoon trading in London at 1.25 pence each.
Kefi said government authorities have arranged for the deployment of additional armed security at the project as a "precautionary and pre-emptive" measure.
Speaking at the gold explorer's annual general meeting Friday, Executive Chair Harry Anagnostaras-Adams said: "Well we certainly live in interesting times. Last Saturday afternoon I was sitting in a calm atmosphere in Addis Ababa with our Ethiopian partners and on Sunday morning, I landed in London to read of the worldwide news of a foiled coup in one of Ethiopia's regions. And since then the team was on action stations to take precautionary measures and avoid damage to our project timetable."
Kefi owns 45% of the Tulu Kapi project, with the Ethiopian government owning the rest. The government has recently partnered with private firm ANS Mining SC for the project. Kefi said it has received USD11.4 million from ANS are part of its involvement.
Kefi said the project development plan has been "re-sequenced" but stressed the start of production remains mid-2021.
"There is expected to be no change to the start of production target date as long as the first phase community resettlement is triggered in September 2019 for completion in November 2019, which the company believes is reasonable given that the community is supportive, the resettlement plans are ready and the authorities are very responsive and determined," explained Kefi.
Anagnostaras-Adams added: "The decisions taken with our partners and the government strengthen our preparations, tighten security and preserve production target of mid-2021. Overall, they shield our Project from heightened anxieties in the country at present, which everyone is nevertheless confident will abate quickly."
Elsewhere, the company said it is "pleased" with its exploration progress being made at its Hawiah copper-gold-zinc project in Saudi Arabia.
"Our targeted exploration programme has been steadily working towards drilling Hawiah and our team is confident that the odds of making a significant discovery are relatively high," the company said.
Kefi plans to drill the prospect in the third quarter of 2019.
Related Shares:
Kefi Gold & Copper