24th Feb 2014 11:55
LONDON (Alliance News) - Nyota Minerals Ltd Monday developed a renewed strategy to focus on exploration, following the sale of a majority stake in its Tulu Kapi project in Ethiopia during December.
The gold exploration and development company said its initial focus is exploration at its 100% owned Northern Block exploration tenements, which were unaffected by its recent sale.
The company said fieldwork has re-commenced at the blocks to advance existing target areas and delineate new areas for subsequent drilling.
Nyota said that SRK Exploration Services Ltd has been engaged to prepare a Competent Person's Report regarding work to date in the Northern Block licence areas and to review fieldwork currently underway. The company said it expects receipt of the CPR in the first quarter 2014.
Nyota ran into trouble in 2013 regarding its Tulu Kapi project when, despite announcing its first ore reserve of 16.9 million tonnes at 1.82 grams per tonne for 1 million ounces of gold earlier in the year, the gold price decline and the company's balance sheet meant that it struggled to find a joint venture partner to develop the site further.
In December, the company completed its sale of a 75% stake in the Tulu Kapi site to KEFI Minerals PLC for cash and the issue of KEFI shares to Nyota, leaving the company with a 25% direct interest and roughly a 34% beneficial interest in the project, taking into account its holding in KEFI shares.
The company said on Monday that it continues to believe that Tulu Kapi will be fast-track developed by KEFI.
Nyota Minerals shares were up 15.8% to 0.550 pence, putting it in the top five AIM risers Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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