The KEFI Gold and Copper (KEFI) Share Price Surged 22.3%. Here’s Why.

Key points:
KEFI shares surged 22.3% after being awarded two new exploration licences.
Investors cheered the move that expanded the firm’s Saudi Arabia portfolio.
In addition, the exploration firm is about to start production at Jibal Qutman.

The KEFI Gold and Copper Plc (LON: KEFI) share price surged 22.3% after being awarded two new exploration licenses in Saudi Arabia, Jibal Hillit and Qunnah. The two licenses were awarded for a five-year term.

Investors cheered the news, given that the two license areas have shown high-grade gold deposits of up to 46 g/t Au at Qunnah and 15.3g/t at Jabal Hillit, hosted in quartz veins. The two license areas could contain significant gold resources.

Also read: The Pros And Cons of Investing In Gold.

KEFI also revealed that it is in discussions with the Deputy Minister for Mineral Resources about the Jibal Qutman Project, which it expects to be resolved during the current quarter. The company revealed that the discussions were centred around its mining license for the project as it looks to start extracting gold from the project.

Investors were excited by the prospect of KEFI moving from being an exploration company into a gold-producing company, which would be a massive step forward for the firm. The gold and copper exploration company has promising projects in Ethiopia and Saudi Arabia with promising prospects.

Details about the two new license areas showed they are found in the eastern area of the Arabian Shield, 30km apart. KEFI revealed that the two areas had 23 known gold occurrences that have been recorded in the past

The gold exploration and development company noted that the license areas were located in a highly-prospective area, which has been historically under-explored; hence, it holds significant promise.

Harry Anagnostaras-Adams, KEFI’s Executive Chairman, commented: “Work in Saudi Arabia is gathering pace on many fronts; our Hawiah Project is firmly on track for the delivery of the Preliminary Feasibility Study by year-end, we have exciting developments on the Jibal Qutman Gold project and now the granting of these two additional exploration licenses. The award of the exploration licences, which contain known high-grade gold occurrences, provides an exciting opportunity to make further discoveries at a time when the country is focused on developing its mineral resources.”

KEFI shares look attractive at current prices with a market capitalisation of £26.33 million with significant future potential.

*This is not investment advice. Always do your due diligence before making investment decisions.

KEFI share price.