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LONDON (Alliance News) - KEFI Minerals PLC Monday said it is on track towards re-activating the mining licence at Tulu Kapi in Ethiopia and it expects to submit its mining licence application for the Jibal Qutman mine in Saudi Arabia by the end of the year.
The gold mining company with operations in Saudi Arabia and Ethiopia said in a short update that it has had an exceptionally productive quarter after raising over GBP2 million in a placing to acquire the remaining 25% of its Tulu Kapi project and move forward its projects in both Ethiopia and Saudi Arabia.
In the remainder of 2014, the company plans to get independent verification of; the mineral resources and ore reserves, its revised mine plan and its estimates for capital expenditure and operational expenditure at the Tulu Kapi site.
It also plans to complete the acquisition for the remaining 25% of Tulu Kapi, and arrange bank finance in order to reactivate the mining licence at Tulu Kapi.
KEFI Minerals bought a 75% stake of the Tulu Kapi licence in December for GBP4.5 million after Nyota had struggled to find a joint venture partner at the site.
In June, Nyota Minerals said it had agreed to sell its remaining 25% in the Tulu Kapi gold project to KEFI for GBP1.5 million in cash and shares, after failing to fund its cash calls for the site.
The company also said on Monday that at the Jibal Qutman site, its joint venture Gold & Minerals is working on refining documentation in order to trigger the mining licence application for the site.
However, KEFI said that further expenditure on the process is being curtailed as they await the outcome of discussions with the regulatory authorities which are currently reviewing their policies for the minerals sector in Saudi Arabia with a view to encouraging exploration whilst ensuring appropriate local benefits.
"At Tulu Kapi, we are on track to complete the DFS documentation required to organise the project finance and re-activate the mining licence. In Jibal Qutman, results from recent drilling extend the known mineralisation and we expect to submit the Mining Licence application by year end," Managing Director Jeff Rayner said in a statement.
KEFI Minerals shares were up 1.8% to 1.40 pence on Monday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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