REG - Kodal Minerals PLC - Funding update – US$7million Deposit Received

Kodal MineralsAnnouncement

01/02/2023 10:45

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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

 John Mackay/Adam Cowl                                                 Tel: 020 3470 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

 

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