The resignation last week of Ethiopia’s prime minister, Hailemariam Desalegn, is not expected to have any impact on KEFI Minerals PLC's (LON:KEFI) activities.
The gold and copper exploration company, which has the Tulu Kapi project in Ethiopia, said its activities have been unaffected in terms of its daily interaction with the various government agencies and the community at Tulu Kapi.
WATCH: KEFI Minerals in a 'terrific position' and on track for Tulu Kapi financing
The company believes its finance plans remain unaffected because it has targeted certain regional financiers, including some who already have a long-term presence in Ethiopia.
“Everyone we deal with appears to regard the prime minister's resignation as a sincere step to the facilitation of broader democratic representation in Government. The concurrently announced State of Emergency appears generally regarded as a preventative measure to ensure peace and order during the leadership transition,” the company said.
KEFI revealed that the Ethiopian Ministry of Mines, Petroleum and Natural Gas has signed off the transfer of the mining licence from KEFI Minerals (Ethiopia) Limited to Tulu Kapi Gold Mines Share Company Limited (TKGM), the jointly-owned project company now owned by the Government of Ethiopia (via the Ministry of Finance and Economic Cooperation) and KEFI.
TKGM's joint KEFI-Government board of directors has approved the business plan for the mine development to commence as soon as the regulatory authorities allow TKGM's financing agreements to be finalised and implemented.
READ: KEFI Minerals scheduled to start work at Tulu Kapi this year
Shares in KEFI were down 0.18p at 3.35p in late morning trading.