TIDMKOD
RNS Number : 4588N
Kodal Minerals PLC
01 February 2021
Certain information contained within this announcement is deemed
by the Company to constitute inside information as defined in
Article 11 of the Market Abuse (amendment) (EU exit) Regulations
(SI 2019/310 ). 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
1 February 2021
Kodal Minerals plc ("Kodal Minerals", "Kodal" or the
"Company")
Update on Gold Assets and Funding Agreement
Kodal Minerals, the mineral exploration and development company
with operations in Mali and Cote d'Ivoire, is pleased to provide
this update on its gold assets which it is progressing in
conjunction with its flagship Bougouni lithium project in Southern
Mali.
The Company's gold assets comprise projects in Mali, including
the recent option to acquire up to 90 per cent of the Fatou
project, as well as licences in Cote d'Ivoire currently held in a
joint venture with Resolute Mining Limited ("Resolute") (the
"Resolute JV").
In addition, and further to the Company's announcement on 15
January 2021, Kodal provides an update on the term sheet signed for
a proposed funding agreement with AIM quoted Riverfort Global
Opportunities Plc and Riverfort Global Opportunities PCC (together,
the "Investors") to provide up to US$2,500,000 ("Funding
Agreement"), to be used to further the exploration of the Company's
gold assets.
HIGHLIGHTS
Resolute JV
-- Kodal Minerals has received a request from Resolute for an
additional extension of the Resolute JV term, as Resolute's
expenditure in the joint venture of approximately US$2 million
falls short of its commitment under the agreement. However, after
consideration, Kodal has refused the extension request and will now
retain 100% ownership of the concessions when the Resolute JV
expires on 25 February 2021.
-- The Resolute JV covers three concessions - Nielle, Tiebissou
and M'Bahiakro (application) and Kodal will continue exploration on
all concessions.
-- Exploration drilling of over 7,400m by Resolute has defined a
gold anomaly at the Nielle project extending for over 1,000m and
open along strike and at depth which will be the priority for
future Kodal drilling in Cote d'Ivoire.
-- Kodal has received all data for the Nielle Project which
includes previously reported drill results with intersections
including:
-- 26m at 1.95g/t gold in drill hole NLRC012
-- 16m at 1.96g/t gold & 10m at 3.62g/t gold in drill hole NLRC014
-- 26m at 1.79g/t gold in drill hole NLRC018
Funding Agreement
-- Kodal has been informed that the Investors have
satisfactorily completed their due diligence in connection with the
Funding Agreement and have confirmed their intention to continue
with the USD$2,500,000 funding arrangement subject to agreement on
final terms.
-- Kodal and the Investors are continuing negotiations over the
final structure and terms of the Funding Agreement and will provide
a further update as soon as possible as to whether final terms are
agreed.
FURTHER INFORMATION
Resolute JV
Resolute has undertaken exploration on the Nielle and Tiebissou
concessions as part of its commitment under the Resolute JV. Kodal
has received an expenditure summary from Resolute demonstrating
expenditure of approximately US$2 million, with expenditure on the
Nielle concession exceeding US$1 million. The initial exploration
activity on the Tiebissou concession consisted of geochemical
sampling and reconnaissance aircore drilling that returned
low-level gold anomalous results. The work is at an early stage and
Kodal will complete a review to determine the potential for further
exploration. Resolute has focussed exploration on the Nielle
concession resulting in definition of an extensive gold anomaly at
the Nielle concession with initial drilling demonstrating gold
mineralisation that remains open at depth and along strike over a
1,000m strike length.
A request for an extension of the Resolute JV term has been
received by Kodal and after consideration the extension request has
been refused by Kodal. Kodal expects that the Resolute JV will be
terminated either on the expiry date of the Resolute JV on 25
February 2021 or earlier, if agreed by Resolute.
Nielle Concession
The Nielle concession is located in the north of Cote d'Ivoire,
approximately 60km to the north of the Tongon Gold mine operated by
Barrick Gold Corporation. The project has been explored by Resolute
with exploration consisting of:
-- Surface geochemistry of 92 stream sediment samples, 38 rock
samples, and 474 soil samples collected. The results of this work
resulted in the identification of two anomalies each over 3km
long.
-- Auger geochemical drilling was then conducted with 542 holes
drilled with a peak assay of 8.3g/t Au.
-- A follow-up programme of 7,000m of aircore drilling was
conducted and initial results were encouraging, with a best
intercept of 12m @ 2.39g/t Au from surface.
-- In the 2018 field season, Resolute drilled another 3,117m in
27 reverse circulation holes with mineralised intersections
including:
-- 26m at 1.95g/t gold in drill hole NLRC012;
-- 16m at 1.96g/t gold & 10m at 3.62g/t gold in drill hole
NLRC014; and
-- 26m at 1.79g/t gold in drill hole NLRC018.
High grade gold mineralisation up to 2m @ 13.9g/t Au is
associated with pyrite, quartz veining and shearing as common in
the Birimian sequence.
Kodal intends to continue drilling of the defined gold anomalous
trend as well as complete the early-stage exploration drilling of
the gold anomalous zones defined by the surface geochemical
sampling.
Funding Agreement
Kodal has continued to advance discussions with the Investors to
finalise the Funding Agreement to advance Kodal's gold assets in
West Africa. Kodal has received notification that the due diligence
has been completed to the full satisfaction of the Investor.
Notwithstanding the signed term sheet (which is non-binding save
for exclusivity and confidentiality), Kodal Minerals and the
Investors are continuing negotiations over the final structure and
terms of the $2,500,000 Funding Agreement and are looking to
finalise the transaction as soon as possible. However, there can be
no guarantee on the outcome of these negotiations and whether the
final structure and terms will ultimately be agreed. Further
updates will be provided as soon as appropriate.
**ENDS**
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 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
The exploration results and activity reported in this
announcement have been reviewed by Mr Bernard Aylward who is a
Member of the Australasian Institute of Mining and Metallurgy. Mr
Aylward has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity being undertaken to qualify as a Qualified Person as
defined in the AIM Note for Mining and Oil & Gas Companies
dated June 2009. Mr Aylward consents to the inclusion in this
announcement of the matters based on his information in the form
and context in which it appears.
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END
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