REG - Kodal Minerals PLC - Bougouni Lithium Project

Kodal MineralsAnnouncement

30/04/2024 09:30

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RNS Number : 5841M  Kodal Minerals PLC  30 April 2024

 

Kodal Minerals Plc / Index: AIM / Epic: KOD / Sector: Mining

 

30 April 2024

Kodal Minerals plc

("Kodal Minerals", "Kodal" or the "Company")

 

Bougouni Lithium Project -

Amendment to the Agreement to terminate Suay Chin International's Spodumene
Offtake Right of First Refusal

 

On 28 March 2024, Kodal Minerals, the mineral exploration and development
company, announced an agreement to terminate the right of first refusal
("ROFR") granted to Suay Chin International Pte Limited ("Suay Chin") over 80%
of the spodumene product produced at the Bougouni Lithium Project in Southern
Mali (the "Agreement"). The parties have agreed an amendment to the Agreement
such that the total termination fee of US$14 million payable to Suay Chin by
Kodal Mining UK Limited ("KMUK", the Bougouni Lithium Project company 51%
owned by Hainan Mining Co. Ltd) will now be paid in three instalments, rather
than two, as set out below, which has now terminated the ROFR and associated
term sheet:

 

1.    US$3.5 million has been paid, which has triggered termination of the
ROFR and associated term sheet;

2.    US$3.5 million is to be paid within 10 business days of the signing
of an offtake agreement between KMUK and Hainan Mining Co Ltd ("Hainan") (as
approved by Kodal Minerals as a KMUK shareholder); and

3.    US$7 million is to be paid within 10 business days of the first
shipment of spodumene concentrate from the Bougouni Lithium Project, or on 31
October 2024, whichever date is earlier.

 

All other terms and conditions of the Agreement remain the same.  The
Agreement is in line with the KMUK funding package announced on 19 January
2023, that part of Hainan's investment in KMUK would be used for a termination
payment for the ROFR.

 

Kodal and KMUK are continuing negotiations with Hainan to finalise an offtake
agreement with Hainan for 100% of the spodumene product produced at the
Bougouni Lithium Project.  It has been agreed between Kodal and Hainan that
any offtake agreement reached between KMUK and Hainan will be based on market
prices for spodumene and will require express written approval from Kodal
Minerals as a shareholder of KMUK. The offtake agreement with Hainan will
initially relate to spodumene production from the Stage 1 Dense Media
Separation (DMS) processing plant.

 

 

**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                                          Tel: 020 3328 5656

 SP Angel Corporate Finance LLP, Financial Adviser & Joint Broker

 John Mackay/Adam Cowl                                                 Tel: 020 3470 0470

 Canaccord Genuity Limited, Joint Broker

 James Asensio/Gordon Hamilton                                         Tel: 020 7523 4680

 Buchanan, Financial PR

 Bobby Morse/Oonagh Reidy                                              Tel: +44 (0)20 7466 5000

                                                                       kodal@buchanancomms.co.uk

 

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