LONDON (ShareCast) - (Sharecast News) - Ethiopia and Saudi Arabia-focussed gold and copper explorer and developer Kefi updated the market on the Tulu Kapi Gold Project on Friday, which is part of the Kefi-operated Ethiopian joint-venture Tulu Kapi Gold Mines Share Company (TKGM).
The AIM-traded firm noted that, after the country's civil war abated at the end of the fourth quarter and given the current, gradual lifting of the state of emergency, security conditions at the Tulu Kapi site, district and transport routes were "improving".

It said the project's finance syndicate remained in place to launch the project as soon as "normal conditions" were satisfied.

TKGM was in "extensive consultations" with the Ethiopian Ministry of Mines to provide the assurances being sought to minimise further project delays.

Meetings were scheduled for next week, including high-level meetings on 7 February, the company said.

Operationally, it said its activities were ongoing, with February's project priorities including reviewing detailed resettlement plans for the affected households with the newly-appointed local government administration, and to complete all outstanding documentation with the ministry and other government agencies.

Over the next few months, it said it would finalise documentation for execution, while finishing the preparation of new lands for resettling households.

Kefi said "all parties" were acting in good faith to prepare to implement the project launch.

It said progress was "intended to be quick", but would rely on the continued improvement of security, and the completion of all documentation and other standard confirmations, such as insurance, to the satisfaction of the ministry and other authorities, the senior lenders and other syndicate members.

"We are proud to be continuing to work tirelessly on the ground in Ethiopia, alongside the Tulu Kapi community and the Ethiopian Government to progress the project," said executive chairman Harry Anagnostaras-Adams.

"This work has continued throughout the recent challenges, which are now rapidly abating, and we anticipate making further progress in the coming weeks."

Anagnostaras-Adams said Kefi had "exciting projects" in both Ethiopia and Saudi Arabia, adding that the minerals sector was "taking off" in both countries.

"We have lots of milestones to achieve in 2022 to further de-risk our projects and hopefully to start closing the valuation gap between the stock market price and the underlying fundamentals."

At 1414 GMT, shares in Kefi Gold and Copper were down 0.63% at 0.71p.

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