REG - Kodal Minerals PLC - Hainan provides up to US$15 million Loan Facility

Kodal MineralsAnnouncement

Wed 16:45

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250430:nRSd8968Ga&default-theme=true

RNS Number : 8968G  Kodal Minerals PLC  30 April 2025

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ("MAR")

 

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

 

30 April 2025

Kodal Minerals plc

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

 

Hainan provides up to US$15 million Loan Facility to the Bougouni Project

 

DMS processing plant ramp up continuing with over 20,000t of spodumene
concentrate on site

 

Kodal Minerals, the mineral exploration and development company, is pleased to
announce that Hong Kong Xinmao Investment Co., Limited ("HKXI"), a wholly
owned subsidiary of Hainan Mining Co., Ltd ("Hainan"), has entered into a loan
agreement with Kodal Mining UK Limited ("KMUK") to provide a facility for up
to US$15 million to be drawdown by KMUK (the "Loan Facility").  An initial
US$7.5 million advance under the Loan Facility has been received by KMUK and
used to satisfy the final payment relating to the binding memorandum of
understanding (the "MoU") between KMUK and the State of Mali (the "State"),
details of which were announced on 1 November 2024.

 

At the Company's flagship Bougouni Lithium Project in Southern Mali
("Bougouni" or the "Project") the ramp-up of the dense media separation
("DMS") processing plant is continuing. The DMS processing plant has produced
over 20,000 tonnes of spodumene concentrate to date and the processing team
are continuing to make adjustments to operations to improve performance and
reach nameplate capacity.  Open-pit mining activity is continuing ahead of
schedule, ensuring that the run-of-mine ("ROM") stockpile is built ahead of
the wet season and in advance of the plant reaching steady state production.

 

Highlights:

·      A Loan Facility with total commitment of up to US$15 million with
an initial drawdown of US$7.5 million received.

·      Loan Facility has a 10-month term with interest of 15% per annum.

·      Final payment under the MoU between KMUK and the State of Mali
paid out of initial Loan Facility drawdown of US$7.5 million.

·      KMUK team meeting with Mali Government Direction Nationale de
Geologie et des Mines ("DNGM") to update on site activities and plant
improvements at Bougouni.

·      KMUK's team are progressing discussions with the Mali Government
in order to finalise the necessary permitting for export, allowing the sale of
ore to China to commence.

·      Over 20,000 tonnes of spodumene concentrate on site at Bougouni
is ready for export and ramp-up of the DMS processing plant continues to
improve plant performance.

 

Bernard Aylward, CEO of Kodal Minerals, remarked: "The agreed Loan Facility is
a prudent measure for KMUK in order to ensure that the ramp-up and site
operations are secured ahead of the commencement of export of product.  KMUK
maintains funds on account and has no other debt. The Loan Facility is
expected to be repaid out of the sales of product once export begins and the
amount of product on site is anticipated to generate revenue in excess of the
amount available under the Loan Facility.

 

"With the completion of the MoU payment and the recently announced mining
licence transfer, the Bougouni Project team are now working to secure the
necessary export permit as the final item required to commence spodumene
concentrate sales.

 

"As the ramp-up of the DMS processing plant continues, we see regular
improvements in the operation and the production of spodumene concentrate.
We anticipate reaching nameplate capacity in the next quarter and entering
steady state production."

 

FURTHER INFORMATION

 

Pursuant to the Loan Facility, HKXI has agreed to provide a loan facility to
KMUK for general corporate purposes, with a total commitment of US$15 million.
An initial drawdown US$7.5 million has already been provided to KMUK.

 

Key points:

·    The Loan Facility has an availability period for drawdowns commencing
from the date of the Loan Facility until one month prior to the final
repayment date, as described below.

·    The final repayment date of the Loan Facility is ten months after the
date of entering into the Loan Facility (the "Final Repayment Date").

·    The Loan Facility attracts an interest rate of 15% per annum.

·    No security has been given over the assets of KMUK.

 

Loan Facility Conditions

Hainan has agreed to supply additional drawdown loans on request during the
availability period, provided certain conditions are met, including submission
of a written request, evidence of board authorisation and the entry into an
offtake agreement with an affiliate or nominee of the lender. The Company is
progressing offtake discussions and further updates will be announced when
appropriate.

 

In the event of legal restrictions preventing the lender from fulfilling its
obligations, the borrower must repay all outstanding amounts within 20 days of
notification.

 

 

**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/Charlie Hammond                                         Tel: 0207 523 4680

 Burson Buchanan, Financial PR

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

                                                                       kodal@buchanancomms.co.uk

 

 

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 (mailto:rns@lseg.com)
 or visit
www.rns.com (http://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 (https://www.lseg.com/privacy-and-cookie-policy)
.   END  AGRWPUBPCUPAGAU