KEFI Gold and Copper (AIM:KEFI), the gold and copper explorer and developer focused on the Arabian-Nubian Shield with projects in Ethiopia, has suspended development activities at its Tulu Kapi gold project after a fatal security incident.
Kefi Gold And Copper plunged 40.2% to 0.704p after the announcement.
The incident occurred on 4 September, resulting in multiple fatalities among security personnel and community members, including one KEFI employee.
Project development had begun in March and remained on schedule for gold production in mid-2028, with a new access road, an electricity connection and plant and equipment deliveries all progressing ahead of the incident.
"The Governments of Ethiopia and of the Oromia Region are committed partners in Tulu Kapi, and we are working together on both the immediate response and on securing the Project's long-term future in a manner which protects the community and all stakeholders", the company said.
KEFI is engaging with community representatives, Ethiopian government authorities and security stakeholders to establish conditions for a safe resumption, and will not restart activities until it is satisfied on safety grounds.
The company said it has sufficient capital reserves and committed standby facilities to cover its needs during the suspension, and will defer further drawdown of project financing until circumstances are fully assessed.
It is too early to assess any impact on the development timetable, with further updates expected once appropriate.
