The Federal Supreme Court of Ethiopia has eliminated a potential liability regarding an inherited claim for damages against KEFI Minerals plc (LON:KEFI).
This follows a judgement earlier this year that reduced the company's liability from US$12mln to US$600,000.
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The original claim had been lodged against KEFI in 2014 and was based on the impact of exploration field activities conducted between 1998 and 2006, a period which pre-dated KEFI's involvement in the Tulu Kapi Gold Project.
These exploration activities comprised the construction of drill pads and access tracks. No objections had been made until 2014 when certain parties from outside the Tulu Kapi district raised the matter and initiated court action against KEFI.
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The Oromia Regional Supreme Court earlier this year rejected 95% of these claims as having no legal basis and reduced KEFI's potential liability to US$600,000.
KEFI's appeal to the Court with regards to the remaining US$600,000 has now succeeded and the company is no longer liable for any damages.
If another appeal is raised, which remains a possibility, KEFI has stated that it would defend its position on the basis that it remains firmly of the belief, on legal advice and as previously reported, that it has no contingent or actual liability.