StockMarketWire.com - A $12m damages claim against KEFI Minerals has been reduced to a potential liability of $600,000 by the Oromia Regional Supreme Court.

KEFI said the $12m claim, which was lodged in 2014, 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 project.

KEFI said these exploration activities comprised the construction of drill pads and access tracks.

It said no objections had been made until 2014 when certain parties from outside the Tulu Kapi district raised this matter and initiated court action.

It said those parties had since been removed by the court rulings from the list of plaintiffs. KEFI said said the Oromia Regional Supreme Court rejected 95% of these claims as having no basis in fact or law and reduced KEFI's potential liability to US$600,000.

KEFI said it had appealed to the Federal Supreme Court with regards to the remaining US$600,000 on the basis that it remained firmly of the belief, on legal advice and as previously reported, that it had no contingent or actual liability, having already settled any obligations when the matter was originally closed by both the regulators and the land occupiers.

KEFI said the Federal Supreme Court had officially admitted the appeal after due review, and the case was expected to be heard within the next two years.

Executive chairman Harry Anagnostaras-Adams said: "It is pleasing that the legacy issues we inherited on acquisition of Tulu Kapi are being dealt with as one would expect.

"This applied to the inherited Reverse VAT tax liability KEFI had paid and has now begun to be reimbursed - and is now also applicable to the inherited exposure to any rehabilitation liabilities, which are also being laid to rest satisfactorily."




At 9:50am: [LON:KEFI] KEFI Minerals PLC share price was -0.2p at 5.6p



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