KEFI Minerals plc (LON:KEFI), the gold exploration and development company with projects in the Kingdom of Saudi Arabia and the Federal Democratic Republic of Ethiopia, is pleased to announce that a court ruling by the Federal Supreme Court of Ethiopia (the “Court”) eliminates KEFI’s potential liability regarding an inherited claim for damages. This follows a judgement earlier this year that reduced the Company’s liability from US$12 million to US$0.6 million as announced on 2 May 2017.
As previously announced and reported in the Company’s statutory accounts, the original claim for damages of US$12 million (approximately ETB240 million) had been lodged against KEFI in 2014. The claim was based on the impact of exploration field activities conducted between 1998 and 2006, a period which pre-dated KEFI’s involvement in the Tulu Kapi Gold Project.
These exploration activities comprised the construction of drill pads and access tracks. No objections had been made until 2014 when certain parties from outside the Tulu Kapi district raised the matter and initiated court action against KEFI.
The Oromia Regional Supreme Court earlier this year rejected 95% of these claims as having no legal basis and reduced KEFI’s potential liability to US$0.6 million.
The company’s appeal to the Court with regards to the remaining US$0.6 million has now succeeded and the Company is no longer liable for any damages.
If another appeal is raised, which remains a possibility, KEFI Minerals plc would defend its position on the basis that it remains firmly of the belief, on legal advice and as previously reported, that it has no contingent or actual liability.
