Business
Q1 2020 Operational Update
Q1 2020 Operational Update.
About this update from Kefi Gold And Copper Plc
[{"type":"text","content":"\n \n \n RNS Number : 8851M\n KEFI Minerals plc\n 14 May 2020\n \n \n \n \n 14 May 2020\n \n KEFI Minerals plc\n (\"KEFI\" or the \"Company\")\n Q1 2020 Operational Update\n KEFI Minerals (AIM: KEFI), the gold exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, provides its latest quarterly operational update.\n This update encompasses the activities of KEFI Minerals (Ethiopia) Ltd (\"KME\") and Tulu Kapi Gold Mines Share Company (\"TKGM\") in Ethiopia, and Gold & Minerals Ltd (\"G&M\") in Saudi Arabia for the period from 1 January 2020 to 31 March 2020 (\"Q1\"), together with more recent developments where appropriate.\n Any material events have already been reported in separate announcements, which are referred to below.\n \n Key business targets preserved, COVID-19 procedures implemented and costs minimised\n KEFI adjusted its modus operandi due to COVID-19 and remains focused on the key targets set out in February 2020. These are to:\n \n o allow major site activities to start for the Company's Tulu Kapi Gold Project (the \"Project\" or \"Tulu Kapi\") in Ethiopia from October 2020; and\n \n o to deliver a maiden Mineral Resource for the Hawiah Project in Saudi Arabia in mid-2020.\n \n \n \n \n KEFI working capital requirements reduced\n \n \n KEFI has reduced its short-term expenditure to reflect the current environment by:\n \n \n o Adjusting parts of the TKGM budget, whilst preserving key business targets;\n \n o Diluting from 38% to 34% of Saudi joint-venture company Gold and Minerals Limited (\"G&M\") by not contributing its pro rata share of expenses to G&M in H1 2020. Given the positive results seen to date from the current drilling programme, KEFI expects to fund its pro rata share going forward;\n \n o A decision by the KEFI Board and senior executives not to draw any salaries in the year to date whilst plans were reviewed and adjusted in light of the pandemic; and\n \n o Ongoing salary reductions by senior management of 25% from 1 January 2020, pending progress reviews.\n \n Corporate Funding secured to offset delayed Project-level funding\n As announced on 11 May 2020, KEFI arranged an equity placing (\"Placing\") for £3.7 million (gross) to maintain P...