Kodal Minerals PLC Funding update -- US$7million Deposit Received (5912O)
01 February 2023 - 9:45PM
UK Regulatory
TIDMKOD
RNS Number : 5912O
Kodal Minerals PLC
01 February 2023
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (596/2014/EU) as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018. Upon the publication of this announcement,
such information no longer constitutes inside information.
Kodal Minerals Plc / Index: AIM / Epic: KOD / Sector: Mining
1 February 2023
Kodal Minerals plc
("Kodal Minerals", "Kodal" or the "Company")
Funding update - US$7million deposit received into escrow
account
Kodal Minerals, the mineral exploration and development company
focused on lithium and gold assets in West Africa, is pleased to
confirm the receipt of the US$7.0 million deposit in relation to
the funding package announced on 19 January 2023 (the "Funding
Transaction").
As announced, the Funding Transaction has been agreed with
Hainan Mining Co. Limited ("Hainan" or "Hainan Mining") and its
wholly owned UK-incorporated subsidiary Xinmao Investment Co.
Limited ("Xinmao" and together the "Hainan Group") and is expected
to provide full financing for the development and commencement of
production at the Bougouni Lithium Project in Mali and support a
major exploration and development programme. The Hainan Group are
highly experienced mining and development professionals and will be
working in partnership with Kodal to continue the advancement of
the Bougouni Lithium Project ("Bougouni Project", "Bougouni" or the
"Project") to production.
The Funding Transaction remains subject to, inter alia, Chinese
regulatory approvals and the Hainan Group has advised the Company
that the progress of the outward direct investment ("ODI")
application to the Chinese government authorities is proceeding as
planned. The Funding Transaction also remains subject to Mali
authority approvals for the necessary restructuring of Kodal's
existing subsidiary in Mali, which is to become a wholly owned
subsidiary of Kodal's newly incorporated UK subsidiary, Kodal
Mining UK Limited.
Updates on the progress to completion of the Funding Transaction
will be announced as appropriate.
Suay Chin pre-emption rights
Pursuant to Suay Chin International Pte Limited's ("Suay Chin")
existing contractual pre-emption rights, the Company offered Suay
Chin the right to subscribe for up to 485,568,717 ordinary shares
in Kodal on the same terms and conditions as set out in the Kodal
Subscription Agreement with the Hainan Group (which is part of the
Funding Transaction) to maintain its shareholding at its current
level of 14.18%. The period of offer has now closed and Suay Chin
did not elect to subscribe for these shares and consequently upon
completion of the Kodal Subscription, Suay Chin will be diluted to
a shareholding in Kodal of 12.08% (assuming no other shares are
issued before then).
Bougouni Project Update
Kodal has continued the engineering, environmental and social
work at Bougouni to ensure it has been able to maintain momentum to
fast track the mine development.
Kodal currently has one reverse circulation ("RC") drill rig and
one diamond drill rig on site completing engineering related
drilling for water bore monitoring drill holes, geotechnical
drilling for final open pit design, metallurgical drilling to
provide additional samples for variability testing along the strike
length of the orebody and exploration infill, extension and
additional pegmatite vein testing.
The RC drilling commenced on 18 January and has completed 806
drilling metres. All results for the drilling are pending.
The diamond drilling commenced on 22 January focussing on
geotechnical drilling. 385m of geotechnical drilling has been
completed to date and drilling is continuing. Drill holes will be
initially logged by a Kodal geologist, with a consultant
geotechnical engineer expected to visit the site at the completion
of the programme to complete all geotechnical reviews and reporting
for the open pit design work.
Kodal has continued the environmental and social activities on
site with additional surface water samples collected and dispatched
for analysis, and consultants Digby Wells have been on site to
manage the location of the water bore drilling and assessment of
groundwater intersected.
The engineering and development programme to fast-track Bougouni
is continuing and updates will continue to be regularly announced
as appropriate.
Defined terms used in this announcement have the same meaning as
those used in the announcement of 19 January 2023 unless otherwise
specified.
**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
Jeremy Porter/Vivek Bhardwaj/Nick Harriss Tel: 020 3328
5656
SP Angel Corporate Finance LLP, Financial
Adviser & Joint Broker Tel: 020 3470
John Mackay/Adam Cowl 0470
Canaccord Genuity UK Limited, Joint Broker
James Asensio/Gordon Hamilton Tel: 0207 523
4680
St Brides Partners Ltd, Financial PR
Susie Geliher/Ana Ribeiro Tel: 020 7236
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
UPDSSSFSFEDSEDE
(END) Dow Jones Newswires
February 01, 2023 05:45 ET (10:45 GMT)
Kodal Minerals (LSE:KOD)
Historical Stock Chart
From Apr 2024 to May 2024
Kodal Minerals (LSE:KOD)
Historical Stock Chart
From May 2023 to May 2024