Kodal Minerals PLC Completion of Suay Chin Subscription Agreement (4608V)
03 November 2017 - 6:00PM
UK Regulatory
TIDMKOD
RNS Number : 4608V
Kodal Minerals PLC
03 November 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
3 November 2017
Kodal Minerals plc
('Kodal Minerals' or 'the Company')
Completion of Suay Chin International Pte Limited Equity
Subscription Agreement and Total Voting Rights
Kodal Minerals, the mineral exploration and development company,
announces that it has received the final payment in regard to the
equity subscription agreement (the "Subscription Agreement") with
Singapore-based Suay Chin International Pte Ltd ("Suay Chin"). The
Company has received the final amount of GBP330,968 and, in
accordance with the Subscription Agreement, will issue 87,096,953
new ordinary shares ("Shares") to Suay Chin at a price of GBP0.0038
per share (the "Subscription Shares").
This receipt completes the Suay Chin subscription following
which it will have subscribed a total of GBP4,825,266 for
1,304,894,645 Shares which will represent 20.0% of the Company's
enlarged issued share capital.
In summary, Kodal has now received from Suay Chin the following
subscription investments:
-- Subscription of GBP500,000 at 0.30 pence per Share for
166,666,667 Shares as announced on 10 March 2017;
-- Subscription of GBP3,300,000 at 0.38 pence per Share for
868,421,052 Shares as announced on 8 May 2017;
-- Subscription of GBP694,297 at 0.38 pence per Share for
182,709,973 Shares as announced on 31 July 2017; and
-- Subscription of GBP330,968 at 0.38 pence per Share for 87,096,953 Shares as announced today.
The final 87,096,953 Subscription Shares will be issued 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 8 November
2017.
Bernard Aylward, CEO of Kodal Minerals, said: "This final
payment from Suay Chin completes a significant investment into
Kodal and has provided us with sufficient funding to undertake our
major exploration and definition programme at the Bougouni Lithium
project. This final payment confirms the ongoing support and
interest of Suay Chin in assisting Kodal in the rapid delineation
of the Lithium mineralisation at Bougouni."
Following the completion of the Subscription Agreement, under
the terms of the Relationship Agreement as set out in the
announcement on 8 May 2017, Suay Chin has the right to nominate a
Director to the Board of Kodal. The Company and its nominated
adviser will undertake due diligence and verification of the
proposed Board nominee, and will look to appoint the new Director
as soon as possible.
In addition, completion of the Subscription Agreement includes
an undertaking for the Company and Suay Chin to seek to negotiate
an extended off-take agreement ("Off-take Agreement") on the basis
of the agreed Off-take Term Sheet, as previously announced on 8 May
2017. The parties will commence negotiating the Off-take Agreement
as soon as reasonably practicable following completion of a scoping
study at the Company's Bougouni Lithium Project in Southern Mali
(the "Project"). The Off-take Term Sheet sets out certain agreed
off-take principles which will be incorporated in any Off-take
Agreement. These principles include the parties agreeing to buy and
sell between 80% and 100% of the spodumene product produced at the
Project for a period of three years as well as the right for Suay
Chin to match any third party off-take terms agreed for a further
period of three years following the expiry of the Off-take
Agreement.
Suay Chin has previously entered into a lock-in agreement under
which it is unable to dispose of any Shares in the Company for 12
months from 12 May 2017 and must adhere to orderly market
principles for a further 12 months thereafter.
Total Voting Rights
With effect from Admission, the Company's issued share capital
will consist of 6,524,482,828 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 6,524,482,828. 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 Wadham/Megan 1177
Dennison
This information is provided by RNS
The company news service from the London Stock Exchange
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