KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF), the mining exploration and development company, said it is planning to have its open-pit mine at the Tulu Kapi project in Ethiopia launched by 2023, with production set for 2025.
Considering this step a “key turning point” for the company, the London-listed firm sees this as the first of a series of steps for the company, with 2024 expecting to see the launch of the Jibal Qutman Gold open-pit in Saudi Arabia, targeting production by 2025 also.
KEFI has secured US$320 million in debt and equity development capital, the essential permits required and a US$70 million mining fleet from its mining contractor, meaning its project in Ethiopia is now fully funded and ready for board approval.
However, the group has encountered challenges with its Exploration Licenses (ELs) surrounding the Tulu Kapi Mining License area as over-pegging issues arose due to a Hong Kong-based shell company's actions, leading to administrative proceedings initiated by KEFI.
Optimistic about resolving this situation, KEFI has applied for additional exploration licenses in Ethiopia.
In Saudi Arabia, KEFI's GMCO subsidiary has made substantial discoveries at Jibal Qutman and Hawiah and these projects, in advanced stages, have received positive regulatory support.
Pre-tax losses for the first six months of 2023 lifted to £3.4 million from £2.9 million in 2022, the company’s interim results revealed.
Shares in KEFI dropped a little over 6% on Friday, having opened at around 0.68p.