24 June 2014
JEDDAH - Kefi Minerals plans to reactivate the mining license for the Tulu Kapi project by the end of this year, start construction in 2015 and begin producing gold in 2016.
The itinerary came ahead of Monday's AGM as the firm charted the "tremendous progress" it had made in the last year, including the discovery of the Jibal Qutman gold deposit in Saudi Arabia, which now boasts a 500,000 ounce resource.
This month, Kefi acquired the 25 percent of Tulu Kapi it didn't already own from Nyota Minerals (LON:NYO) for £1.5 million in cash and shares following the initial purchase of its majority stake last year for £4.5 million.
This transaction is expected to close in August this year, when Kefi overall will have a resource fo 2.2 million attributale ounces.
Last week, it said it was now in a position to update resources and reserves at Tulu Kapi after the latest exploration had underlined its model of the ore body.
Kefi noted that financing is one of the toughest challenges in the resource sector currently and that it was "comforting" that KEFI had maintained momentum but also attracted support for acquisitions from pre-eminent financial institutions.
"We emphasize that we continue to maintain tight cost control despite operating as early entrants in emerging markets focused on start-up management.
"This way we will be able to generate superior long-term returns for shareholders. Our prudent approach is demonstrated by the cost-effective acquisition of the Tulu Kapi project," it said.
JEDDAH - Kefi Minerals plans to reactivate the mining license for the Tulu Kapi project by the end of this year, start construction in 2015 and begin producing gold in 2016.
The itinerary came ahead of Monday's AGM as the firm charted the "tremendous progress" it had made in the last year, including the discovery of the Jibal Qutman gold deposit in Saudi Arabia, which now boasts a 500,000 ounce resource.
This month, Kefi acquired the 25 percent of Tulu Kapi it didn't already own from Nyota Minerals (LON:NYO) for £1.5 million in cash and shares following the initial purchase of its majority stake last year for £4.5 million.
This transaction is expected to close in August this year, when Kefi overall will have a resource fo 2.2 million attributale ounces.
Last week, it said it was now in a position to update resources and reserves at Tulu Kapi after the latest exploration had underlined its model of the ore body.
Kefi noted that financing is one of the toughest challenges in the resource sector currently and that it was "comforting" that KEFI had maintained momentum but also attracted support for acquisitions from pre-eminent financial institutions.
"We emphasize that we continue to maintain tight cost control despite operating as early entrants in emerging markets focused on start-up management.
"This way we will be able to generate superior long-term returns for shareholders. Our prudent approach is demonstrated by the cost-effective acquisition of the Tulu Kapi project," it said.
© The Saudi Gazette 2014
