Shares in KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF, FRA:KMSA) rose 7% to 1.42p on Friday after the company responded to speculation around a possible new joint venture in Saudi Arabia.
The AIM-quoted precious metals group, which is in the mine construction phase in Ethiopia, said its Saudi Gold and Minerals SLA (known as GMCO), in which it holds a 13% stake, is working with local conglomerate AJ Lan Group on a potential deal.
The collaboration would focus on a licence area outside GMCO’s existing holdings.
The development was flagged by GMCO at last week’s Future Minerals Forum in Riyadh, but KEFI said details of the venture would only be released once it is confirmed and formalised.
While still at an early stage, the partnership would sit alongside GMCO’s existing joint venture with Australia’s Hancock Prospecting and its own wholly-owned exploration licences in Saudi Arabia.
Harry Anagnostaras-Adams, KEFI’s founder and executive chairman, said: “Whilst not yet confirmed and formalised, the proposed exploration joint venture between GMCO and AJ Lan Group is intended to complement GMCO's recent joint venture with Australian major Hancock Prospecting as well as its own 100%-owned exploration ground.”
He added that the initiative was part of “the growth in the Saudi minerals sector and GMCO's successful track record of discovery”.
KEFI’s stake in GMCO is relatively small, but the company has played a key role in its development and sees its Saudi operations as a major plank of future growth.