Kodal Minerals PLC Raising £1.5 million to Advance Bougouni Project (9370Q)
11 June 2018 - 4:45PM
UK Regulatory
TIDMKOD
RNS Number : 9370Q
Kodal Minerals PLC
11 June 2018
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Kodal Minerals Plc / Index: AIM / Epic: KOD / Sector: Mining
11 June 2018
Kodal Minerals Plc
("Kodal Minerals" or "the Company")
Issue of Shares to Raise GBP1.5 million for Further Development
of Bougouni Lithium Project
Kodal Minerals, the mineral exploration and development company
focused on West Africa, is pleased to announce that it has
conditionally raised GBP1.5 million (before expenses) by way of a
subscription and placing of 1,153,846,149 ordinary shares of
0.03125 pence each ("Ordinary Shares") in the capital of the
Company (the "Fundraising") at a price of 0.13 pence per share (the
"Subscription Price"). The net proceeds from the Fundraising will
be used to further the exploration and development programme at the
Bougouni lithium project in Southern Mali ("Bougouni").
As part of the Fundraising, Suay Chin International Pte Ltd
("Suay Chin") is subscribing GBP1.2 million for 923,076,923
Ordinary Shares (the "Subscription Shares") at the Subscription
Price by way of a subscription agreement between it and the Company
(the "Subscription"). The Subscription Shares will be issued and
admitted to trading on AIM following receipt by the Company of the
Subscription proceeds, which are expected to be delivered by Suay
Chin by 6 July 2018. On completion of the Subscription, Suay Chin
will own 2,227,971,568 Ordinary Shares which will represent 29.0
per cent of the issued share capital of the Company.
The Subscription Shares will be subject to the existing lock-in
agreement between the Company, Suay Chin and others under which all
of Suay Chin's holding of Ordinary Shares are subject to orderly
market restrictions until 12 May 2019.
Since Suay Chin currently holds 20 per cent of the Company's
issued share capital, the Subscription is a related party
transaction under the AIM Rules for Companies. Accordingly, the
directors who are independent of Suay Chin (being all directors
except for Qingtao Zeng) consider, having consulted with the
Company's nominated adviser, Allenby Capital Limited, that the
terms of the Subscription are fair and reasonable insofar as the
Company's shareholders are concerned.
The balance of the Fundraising has been completed by way of a
placing of 230,769,226 Ordinary Shares with existing and new
shareholders of the Company at the Subscription Price. Application
will be made to the London Stock Exchange for the Placing Shares to
be admitted to trading on AIM ("Admission"). It is expected that
Admission will become effective on or around 15 June 2018.
The Subscription Shares and the Placing Shares will rank pari
passu in all respects with the existing Ordinary Shares.
Bernard Aylward, Chief Executive Officer of Kodal Minerals
commented: "The Company welcomes the continued financial and
strategic support of Suay Chin. Kodal and Suay Chin are continuing
to work together on the metallurgical testwork and bulk sampling
with the aim of progressing our project as rapidly as possible. As
part of the initial investment by Suay Chin, Kodal and Suay Chin
have agreed to negotiate a binding off-take agreement as the
project advances to development, and this further investment by
Suay Chin confirms its confidence in the Bougouni Lithium Project
and the interest in securing supply of the spodumene
concentrate.
"Our work programmes conducted across Bougouni have confirmed
the presence of significant, high grade lithium mineralisation at
shallow depth. Further underpinning the potential commercial value
of this asset are the encouraging results from the metallurgical
and processing test work.
"In line with this, we will be working towards the development
of a maiden resource estimate over the summer months once we
receive the assay results from the most recent drill programme. In
the meantime, these new funds from Suay Chin and other investors
will allow us to plan with confidence for the next drilling season
later this year."
Total Voting Rights
As a result of the issue of the Placing Shares as described
above, the issued share capital of the Company will consist of
6,755,252,054 Ordinary Shares from Admission.
The Company holds no shares in treasury. The total number of
voting rights in the Company from Admission will therefore be
6,755,252,054. 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.
**ENDS**
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, Nominated
Adviser Tel: 020
Jeremy Porter/Nick Harriss 3328 5656
SP Angel Corporate Finance LLP,
Financial Adviser & Broker Tel: 020
John Mackay 3470 0470
St Brides Partners Ltd, Financial
PR Tel: 020
Susie Geliher/Lottie Wadham 7236 1177
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END
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