Kefi Minerals' shares fall after quarterly operational update

Kefi Minerals' shares fell more than 9% after it issued a quarterly operational update, saying its £5.62m fundraising in the period ensured it stayed on track by supporting the working capital needed to fund activities for the next 12 months.

Executive chairman Harry Anagnostaras-Adams said this was as Kefi looked to begin development of Tulu Kapi Gold project during the year.

"This also allows us the time to put into place the funding package required to trigger development of the Tulu Kapi Gold Project," he said.

Anagnostaras-Adams said although the company's immediate focus had been Ethiopia, it had not ignored projects in Saudi Arabia.

"We have been in serious discussions with the Saudi Arabian authorities which have enabled our partner to lodge the preliminary Mining Licence Application for the Jibal Qutman Gold Project for formal review and refinement," the executive chairman said.

"We are fortunate that in Ethiopia and Saudi Arabia, we have two governments who are working to facilitate growth of the mining sector."

In both jurisdictions, Kefi was well placed to take a leading position by assembling the best possible syndicate of stakeholders.

"With appropriate cornerstone shareholders, project contractors and a strong exploration and development team, we have most of the key pieces in place to progress to developing profitable gold mines."

At 11:16 GMT, shares in AIM-traded Kefi were down 9.3% to 4.88p each.