KEFI Gold and Copper Plc (AIM: KEFI) has announced an update regarding the company’s arrangements in the Kingdom of Saudi Arabia, where KEFI’s minority-owned Gold & Minerals Ltd (GMCO) joint venture is growing rapidly.
KEFI and its partner ARTAR formed the GMCO joint venture in 2008 has provided a first mover advantage that has seen GMCO amass over 1,000km2 of ground selected from GMCO’s proprietary database, focusing on some of the most prospective exploration targets in Saudi Arabia.
This has led to the discoveries of the Jibal Qutman Gold Project and at Hawiah Copper-Gold Project in respect of which GMCO is rapidly advancing development studies, as well as the identification of additional satellite deposits currently undergoing further exploration.
Elsewhere across GMCO’s portfolio, earlier stage exploration is also underway which is expected to maintain a healthy project pipeline targeting a third discovery. Accordingly, GMCO and is now focused on how to best position the joint venture for the next stage of its development.
Executive chairman, Harry Anagnostaras-Adams, commented, “KEFI is very fortunate to be a partner in GMCO. We have an excellent partnership with majority partner ARTAR and we are collectively and efficiently advancing our portfolio of mining assets in a location that is becoming one of the mining industry’s top priorities.”
In order to facilitate maximum growth, KEFI and ARTAR have agreed to refine their GMCO shareholders agreement and respective working arrangements. As previously announced, extensive feasibility study and exploration work has been undertaken in 2023 in Saudia Arabia and is still ongoing. The gross cost of the programme in 2023 was £19M and the company will provide updates over the coming weeks and months.
ARTAR funded £3.5M of KEFI’s pari passu 2023 contributions and GMCO pushes forward to define the preferred development scenario over coming months for its first discovery Jibal Qutman, as well as the resource upgrade and expansion at its second discovery Hawiah, and further resource expansion and discovery.
In addition, the partners’ respective shareholdings of GMCO are now being adjusted to the expected 75% ARTAR and 25% KEFI. KEFI formerly held 27% of GMCO.
“We have a head start on most parties now entering the Arabian Nubian Shield in both Saudi Arabia and Ethiopia. The arrangements announced today will reinforce both GMCO’s and KEFI’s position still further,” said Anagnostaras-Adams.
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