KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF) told investors its Saudi Arabia joint venture joint venture has secured the Al Hajar North exploration licence in a competitive tender round.
Al Hajar North spans 910 square kilometres, in the Wadi Shwas Mineral Belt, an area with geological similarities to the Wadi Bidah Mineral Belt (WBMB), where the JV has already made three Volcanic Massive Sulphide (VMS) discoveries.
The JV, known as GMCO/ARTAR, has been awarded 50% of the new licence, alongside new partner, major Australian mining company Hancock Prospecting.
"GMCO's preeminent exploration record was today instrumental in it being awarded the Al Hajar North exploration licence, in joint venture with KEFI's partner ARTAR and Australian major mining company Hancock Prospecting,” chief executive Harry Anagnostaras-Adams said.
Eighteen majors (‘multi-billion-dollar’ groups) participated in the Saudi tender process, and the London-listed small-cap's inclusion is notable – albeit a process is presently underway for KEFI to exit the venture via a transaction with a larger miner.
A new deadline for bids has been set to 31 March.
"This significant expansion of GMCO's asset portfolio is coinciding with KEFI's strategic review wherein we are currently engaging with a number of parties with a view to selecting, with major partner ARTAR, a short-list of parties to potentially replace KEFI's position in GMCO and thus support GMCO's long-term role to develop profitable mines in the Kingdom of Saudi Arabia,” Anagnostaras-Adams added.