KEFI Gold and Copper plc (LON:KEFI), the gold exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, has provided this positive update about the security situation in Ethiopia.
As previously reported, following the taking of office in October 2021, the democratically elected Ethiopian Government launched major military offensives in late November 2021 to drive rebel militias out of the neighbouring states they had recently occupied. Over the past few days, both sides in the conflict have reported that the rebel militias are withdrawing. The Government has publicly appealed to the local communities to treat the retreating rebels with dignity.
KEFI sees this as a very positive development, so soon after the Ethiopian Government’s re-appointment in October 2021, following the highly significant June 2021 elections. This turning point in the military conflict reinforces KEFI’s optimism that peace will soon be restored in Ethiopia and, to this end, we also note that diplomatic efforts have recently been intensified, with mediation now backed by the African Union, United Nations and major world powers.
KEFI’s project teams have remained on the ground throughout this period of broader national conflict, preparing for the launch of the Company’s Tulu Kapi Gold Project (the “Project”) in an appropriate safety-minded manner. At the same time, Project syndicate members have reaffirmed their intended Project participation as soon as compliance is demonstrated with normal conditions precedent, including the community and security aspects of World Bank IFC Performance Standards – also a condition of the mining licence.
Developments on the ground in recent days have largely driven the area of major conflict back to its origin in Tigray and helps to establish a promising scene for the hoped-for de-escalation, ceasefire and peaceful resolution for all Ethiopians. In KEFI’s view, there is little doubt that Ethiopia will then rapidly regain its long-standing position amongst the world’s top 10 growth countries and that the minerals sector will play an important role with the Company’s Tulu Kapi Gold Project as one of the first movers.
Executive Chairman of KEFI Gold and Copper, Harry Anagnostaras-Adams, commented: “We are especially happy for our host country Ethiopia and its overwhelmingly peace-loving citizens.
“We deeply thank our personnel, our community and other stakeholders for working so tirelessly during the challenging times of 2021 in Ethiopia which now show real promise of being put behind us. It is also wonderful to hear that many of the Company’s Ethiopian friends and associates living in other countries are planning to spend Christmas in Ethiopia celebrating with their extended families the expected imminent resolution of the internal conflicts.
“In addition to our operations in Ethiopia, our team on the ground in Saudi Arabia has made significant progress in adding value to the Company’s assets this year, completing approximately 30,000 metres of drilling, along with a range of tasks within the Preliminary Feasibility Study. An updated Mineral Resource Estimate for our Hawiah Copper-Gold Project remains on track to be reported later this month.”
