Kodal Minerals PLC Update re Equity Subscription Agreement (5076M)
31 July 2017 - 4:01PM
UK Regulatory
TIDMKOD
RNS Number : 5076M
Kodal Minerals PLC
31 July 2017
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ("MAR"). With the publication of this announcement,
this information is now considered to be in the public domain.
Kodal Minerals plc / Index: AIM / Epic: KOD / Sector: Mining
31 July 2017
Kodal Minerals plc
('Kodal Minerals' or 'the Company')
Update re Equity Subscription Agreement and total voting
rights
Kodal Minerals, the mineral exploration and development company,
provides an update to its announcements of 8 May 2017 and 1 June
2017 regarding an equity subscription in the Company of
approximately GBP4.8 million by Singapore-based Suay Chin
International Pte Ltd ("Suay Chin"). Following Suay Chin's initial
investment of GBP500,000 in the Company for 166,666,667 ordinary
shares ("Shares") at GBP0.003 per Share, Suay Chin and the Company
entered into an agreement (the "Subscription Agreement") for Suay
Chin to complete a further investment of up to GBP4.3 million in
the Company by way of a further subscription for up to
1,138,227,978 Shares ("Subscription Shares") at GBP0.0038 per Share
in two tranches (the "Further Subscription").
The first tranche of the Further Subscription for GBP3,300,000
was completed with the admission to trading on AIM of 868,421,052
Subscription Shares on 12 May 2017.
The second tranche of the Further Subscription is for
GBP1,025,266, of which Kodal Minerals has received approximately
GBP694,297 and therefore approximately GBP330,969 remains
outstanding (the "Final Amount"). Suay Chin has advised the Company
that it intends to honour its subscription in full and the Company
acknowledges that Suay Chin has made, and is continuing to make,
significant efforts to complete the Further Subscription and,
therefore, the Company and Suay Chin have mutually agreed to extend
the deadline for receipt of the Final Amount from 31 July 2017
until 31 January 2018.
Pursuant to the receipt of approximately GBP694,297, the Company
has agreed to issue 182,709,973 Subscription Shares at GBP0.0038
per Share to Suay Chin, conditional on admission of the
Subscription Shares to trading on AIM ("Admission"). Application
will be made to the London Stock Exchange for Admission of these
Subscription Shares and such Admission is expected to become
effective on 4 August 2017.
Upon Admission, Suay Chin will have invested a total of
GBP4,494,298 in the Company and will hold a total of 1,217,797,692
Shares, representing approximately 18.92% of the Company's then
issued share capital.
On completion of the Further Subscription, as previously
announced, and once Kodal Minerals has commissioned and completed a
scoping study at the Company's Bougouni Lithium Project in Southern
Mali (the "Project"), the Company and Suay Chin will seek to
negotiate an extended off-take agreement for between 80% and 100%
of the spodumene product produced at the Project for a period of
three years from the commencement of commercial production.
Further update announcements will be made by the Company once
the Further Subscription has completed.
Total Voting Rights
With effect from Admission, the Company's issued share capital
will consist of 6,437,385,875 ordinary shares with one voting right
per share. The Company does not hold any ordinary shares in
treasury. Therefore, the total number of ordinary shares and voting
rights in the Company will be 6,437,385,875. This figure may be
used by shareholders in the Company as the denominator for the
calculations by which they will determine if they are required to
notify their interest in, or a change to their interest in, the
issued share capital of the Company.
For further information, please visit www.kodalminerals.com or
contact the following:
Kodal Minerals plc
Bernard Aylward, CEO Tel: +61 418
943 345
Allenby Capital Limited, AIM Nominated
Adviser Tel: 020 3328
Jeremy Porter/Nick Harriss 5656
SP Angel Corporate Finance LLP,
Financial Adviser & Broker Tel: 020 3470
John Mackay 0470
St Brides Partners Ltd, Financial
PR Tel: 020 7236
Susie Geliher/Lottie Brocklehurst/Megan 1177
Dennison
This information is provided by RNS
The company news service from the London Stock Exchange
END
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