TIDMKOD
RNS Number : 0031T
Kodal Minerals PLC
22 March 2021
The following announcement replaces the announcement released on
19 March 2021 at 2:18 p.m. under RNS number 9116S due to
typographical errors. The word "million" has been removed from the
first sentence of the first paragraph, and the exercise prices in
the paragraph entitled "Exercise of Warrants" have been corrected
to 0.061 pence and 0.090 pence. The corrected announcement is set
out below and all other details remain unchanged.
Certain information contained within this announcement is deemed
by the Company to constitute inside information as stipulated under
the UK Market Abuse Regulations. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Kodal Minerals Plc / Index: AIM / Epic: KOD / Sector: Mining
Kodal Minerals plc ('Kodal Minerals' or the 'Company')
Placing to Raise GBP3.5 million to Advance Development and
Exploration Activities at Priority Gold Assets and Flagship
Bougouni Lithium Project,
and Exercise of Warrants
Kodal Minerals, the mineral exploration and development company
focused on gold and its Bougouni Lithium Project in West Africa, is
pleased to announce it has raised GBP3,500,000 (before expenses)
via a placing, which was oversubscribed, of 2,800,000,000 new
ordinary shares of 0.03125p each in the capital of the Company
('Placing Shares') at a price of 0.125 pence per Placing Share (the
'Placing'). The funds raised will support Kodal in undertaking
exploration, drilling and development activities at its priority
gold assets in Mali and Cote d'Ivoire, as well as advancing its
flagship Bougouni Lithium Project ('Bougouni') in Mali which is
awaiting the grant of a mining licence. The Placing Shares are
expected to be admitted to trading on AIM ('Admission') on 25 March
2021.
Use of Proceeds
The net proceeds of the Placing will be used by the Company for
additional working capital and to explore priority targets in its
suite of gold projects which have been identified for the potential
to define JORC compliant mineral resources quickly, as well as
potential to host large scale gold mineralisation. The priority
exploration targets for this exploration campaign are:
-- Fatou gold project in Mali - drilling at the Fatou Main
prospect where historic exploration defined a NI43-101 mineral
resource estimate exceeding 350,000oz gold. The drilling will aim
to confirm and expand the known gold mineralisation and provide
data to support completion of a JORC compliant mineral resource
estimate.
-- Nielle gold project in Cote d'Ivoire - now wholly owned by
Kodal following the end of the joint venture with Resolute Mining
Ltd, where exploration completed previously by the joint venture
has defined an extensive zone of gold mineralisation with positive
initial drilling results. The mineralised zone remains open along
strike and at depth and Kodal's initial drilling programme is
designed to confirm and extend the mineralised zone and provide
confidence in the geological interpretation prior to undertaking a
maiden mineral resource assessment.
-- Dabakala gold project in Cote d'Ivoire - exploration activity
completed by Kodal continues to confirm a major surface geochemical
anomaly with assay results up to 6.14g/t gold returned. This new
anomaly has never been previously drill tested and Kodal will focus
on infill geochemical sampling to define the key targets for
reconnaissance drill testing.
-- Bougouni Lithium Project in Mali - Following the expected
grant of a mining licence by the Malian government, funds will be
used to advance the Bougouni Project into production. Proceeds from
the Placing will allow the Company to continue the review of
engineering, processing and funding requirements for the
project.
Memorandum of Understanding ('MOU') with Sinohydro Corporation
Limited ('Sinohydro')
As announced on 1 September 2020, the Company has entered into a
MOU with Sinohydro, a specialist engineering and construction
contractor, to work together to develop the Bougouni Lithium
Project. Progress under the MOU has been affected by travel
restrictions due to the Covid pandemic which have prevented site
visits from Sinohydro employees and other specialists and also by
the political situation in Mali which has delayed the issue of the
mining licence. The exclusivity period for Sinohydro under the MOU
has now ended, but the parties have expressed a desire to continue
working together and Kodal will also consider other potential
consultants and partners to deliver the best outcome for the
project.
Term sheet for Convertible Loan Note facility
On 5 March 2021, the Company announced that it was continuing
discussions for potential funding of its gold projects through a
$2.5m convertible loan note facility with Riverfort Global
Opportunities plc and Riverfort Global Opportunities PCC and a
non-binding term sheet had been signed in this regard, and which
was first announced on 17 December 2020 (the 'Term Sheet'). The
Board of Kodal has decided to proceed with the Placing instead of
the funding proposed by the Term Sheet and therefore discussions on
that proposal have ended. The $300,000 advance to the Company under
the Term Sheet will now fall due for repayment by the Company on 31
October 2021, for which existing cash resources will be used.
Bernard Aylward, CEO of Kodal Minerals, commented: "We are
delighted with the fantastic support we have received in
undertaking this significantly oversubscribed placing for GBP3.5
million. The fundraise puts us in a strong position to be able to
focus on carrying out further exploration work across our portfolio
including drilling campaigns at our priority gold assets, Fatou,
Nielle and Dabakala. Crucially, the Placing funds will be deployed
to help bring the Bougouni Lithium Project into production post
grant of a mining licence by the appropriate authorities, and I am
very much looking forward to being able to announce this
development in due course.
"As our shareholders will be aware, as a Company we remain
bullish with regards to the lithium market thanks to the vital role
it has to play in achieving a greener future. At Kodal, we are
excited to be playing our own part in the global effort that is
driving the planet towards a more sustainable and environmentally
friendly future. I firmly believe that Bougouni is ideally
positioned to take advantage of the anticipated lithium supply
deficit, predicted for 2023/4, caused by too few lithium projects
coming on stream to match the growing rate of demand. I look
forward to providing further updates in due course."
Details of the Placing
The Placing will result in the issue of 2,8 00,000,000 new o
rdinary shares of 0.03125p each in the capital of the Company,
representing approximately 17.9 per cent. of the Company's issued
ordinary share capital as enlarged by the Placing. The Placing
Shares will be issued at a price of 0.125p each.
Application will be made for the Placing Shares to be admitted
to trading on AIM and it is expected that their admission to AIM
will take place on or around 25 March 2021. The issue of the
Placing Shares is conditional upon, inter alia, Admission
occurring.
The Placing Shares, when issued and fully paid, will rank pari
passu in all respects with the Company's existing Ordinary Shares,
including the right to all dividends or other distributions
declared, made or paid after the date of issue of the Placing
Shares.
The Placing Shares will be issued utilising the Company's
existing share authorities to issue new shares on a non-pre-emptive
basis.
Exercise of warrants
Following the receipt of two Warrant Exercise notices, the
Company has allotted a total of 80,355,664 new ordinary shares of
0.03125p each in the capital of the Company (the 'Warrant Shares').
Pursuant to the original Warrant Instruments dated 14 July 2020 and
27 October 2020, the warrants have exercise prices of 0.061 pence
and 0.090 pence per Warrant Share. As a result, the amount raised
by the exercise of the warrants totals GBP58,170.99. The Warrant
Shares will rank pari passu in all respects with the existing
Ordinary Shares of the Company. Application will be made for the
admission to trading on AIM of the Warrant Shares. Admission of the
Warrant Shares is expected on or around 25 March 2021.
Total Voting Rights
Upon Admission of the Placing Shares and the Warrant Shares, the
issued share capital of the Company will consist of ordinary Shares
of 0.01325p each. The Company holds no shares in treasury. The
total number of voting rights in the Company from Admission will
therefore be 15,732,363,511. This figure may be used by
shareholders as the denominator for the calculations by which they
determine if they are required to notify their interest in or a
change to their interest in the Company under the Disclosure
Guidance and Transparency Rules of the UK Financial Conduct
Authority.
AIM Rule 17
In accordance with AIM Rule 17, the Company announces that the
beneficial interest of Suay Chin International Pte Ltd in the
Company remains unchanged at 2,290,471,568 Ordinary Shares but upon
Admission will represent 14.56 per cent. of the Company's then
issued share capital.
**S**
For further information, please visit www.kodalminerals.com or
contact the following:
Kodal Minerals plc Tel: +61 418 943
Bernard Aylward, CEO 345
Allenby Capital Limited, Nominated Adviser Tel: 020 3328
Jeremy Porter/Nick Harriss/Liz Kirchner 5656
SP Angel Corporate Finance LLP, Financial Tel: 020 3470
Adviser & Broker 0470
John Mackay, Adam Cowl
St Brides Partners Ltd, Financial PR Tel: 020 7236
Susie Geliher/Cosima Akerman 1177
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IOEUUONRABUOURR
(END) Dow Jones Newswires
March 22, 2021 03:00 ET (07:00 GMT)
Kodal Minerals (LSE:KOD)
Historical Stock Chart
From Feb 2024 to Mar 2024
Kodal Minerals (LSE:KOD)
Historical Stock Chart
From Mar 2023 to Mar 2024