REG - Kodal Minerals PLC - Subscription & Oversubscribed Placing Raises £3.0m

Kodal MineralsAnnouncement

04/05/2022 07:00

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RNS Number : 1991K  Kodal Minerals PLC  04 May 2022

Certain information contained within this announcement is deemed by the
Company to constitute inside information as stipulated under the UK Market
Abuse Regulation. 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

 4 May 2022

Kodal Minerals plc ('Kodal Minerals' or the 'Company')

 

Subscription and Oversubscribed Placing to Raise £3.0 million to Advance
Development of Bougouni Lithium Project

 

Kodal Minerals, the mineral exploration and development company focused on its
Bougouni Lithium Project in West Africa, is pleased to announce it has raised
£3,000,000 (before expenses) via a subscription for 130,142,857 new ordinary
shares of 0.03125p each and an oversubscribed placing of 941,285,712 new
ordinary shares of 0.03125p each in the capital of the Company, with the total
fund raise together comprising 1,071,428,569 new ordinary shares of 0.03125p
 ('Placing Shares') at a price of 0.28 pence per Placing Share (the
'Placing').  The funds raised will support Kodal in the continuing
development and preparation for financing and construction of its flagship
Bougouni Lithium Project ('Bougouni') in Mali. The Placing Shares are expected
to be admitted to trading on AIM ('Admission') on or around 10 May 2022.

 

Bernard Aylward, CEO of Kodal Minerals, commented: "This oversubscribed
placing demonstrates the ongoing support of our Bougouni Lithium project and
the opportunity to move into the development and construction phase.  Our
major shareholder Suay Chin International Pte Ltd ('Suay Chin') has
participated in the subscription along with members of the Board and Company
executives.  Suay Chin continues to offer technical support in this important
phase of project planning and moving to a decision to mine.  The funds raised
in the placing will be used to complete the Engineering programme and the
important Environmental, Social and Community Engagement programmes.  In
addition, the Company will undertake infill and extension drilling of the
defined resource areas to prepare for a minerals resource review and potential
increase and upgrade of the current resource base.  In addition, the Company
will also undertake exploration drilling on the extensive landholding where
our previous work has highlighted major potential to add to the existing
resource base.

 

"The Bougouni Lithium project is fully permitted for development with an
approved Mining licence and an Environmental permit.  Our project continues
to attract attention in this strong lithium market and the Company is
assessing opportunities for the development of the project.  The lithium
market has continued to grow strongly over the last 12 months with the
increasing demand for spodumene product driving the price of the spodumene
concentrate to over US$3,000 per tonne compared with the Company's assumed
price of US$680 per tonnes utilised in the 2020 Bougouni Feasibility study.
The Company is focussed on moving the Bougouni Lithium project to production
as soon as possible to take advantage of this supply deficit and maximise
value of the project.  These placing funds ensure the Company's work can
continue at pace and we look forward to updating shareholders of our
progress."

 

Use of Proceeds

The net proceeds of the Placing will be used by the Company for activities
associated with the Bougouni Lithium project, continued exploration of the
Company's gold assets and for additional working capital.  The priority
activities and exploration targets are:

 

·    Bougouni Lithium Project

o  Completion of Metallurgical test work to confirm overall recovery of
spodumene in treatment process.  Currently utilizing 71% recovery, however
test work is indicating higher recoveries of 75% and review of industry
publications indicates recoveries of up to 80% achievable offering significant
upside to the project

o  Engineering design of processing plant and associated infrastructure to be
completed

o  Geotechnical test work for final open pit optimisation and design to be
completed in conjunction with resource infill and extension drilling

o  Bougouni Environmental activities to consist of community surveys and
engagement for development programmes and review of compensation

·    Corporate Activities

o  Mining Company to be formed and negotiations with Mali government for the
Shareholders agreement and Operators contract to be finalised prior to Mining
licence transfer to new Mining Company

o  Engagement of Key development team

·    Resource Infill and Extension drilling to be undertaken at the
Bougouni Lithium project

·    Gold exploration drilling of advanced targets focused on high grade
opportunities at the Nielle project in Cote d'Ivoire and the Fatou project in
Mali

 

Details of the Placing

The Placing will result in the issue of 1,071,428,569 new ordinary shares of
0.03125p each in the capital of the Company, representing approximately 6.34
per cent. of the Company's issued ordinary share capital as enlarged by the
Placing. The Placing Shares will be issued at a price of 0.280p each.

 

Application will be made for the Placing Shares to be admitted to trading on
AIM and it is expected that their admission to AIM will take place on or
around 10 May 2022. The issue of the Placing Shares is conditional
upon, inter alia, Admission occurring.

 

The Placing Shares, when issued and fully paid, will rank pari passu in all
respects with the Company's existing Ordinary Shares, including the right to
all dividends or other distributions declared, made or paid after the date of
issue of the Placing Shares.

 

The Placing Shares will be issued utilising the Company's existing share
authorities to issue new shares on a non-pre-emptive basis.

 

The subscription component of the funds raised includes subscriptions from
Kodal CEO Bernard Aylward (£15,000), Non-Executive Director Qingtao Zeng
(£14,400) and key executives Steven Zaninovich, Project Manager (£20,000),
and Mohamed Niare, Country Manager, (£15,000) who have participated in the
fund raising to an aggregate amount of £64,400. A further £300,0000 has been
subscribed by Suay Chin.

 

Total Voting Rights

Upon Admission of the Placing Shares the issued share capital of the Company
will consist of 16,903,730,956 ordinary Shares of 0.01325p each. The Company
holds no shares in treasury. The total number of voting rights in the Company
from Admission will therefore be 16,903,730,956. This figure may be used by
shareholders as the denominator for the calculations by which they determine
if they are required to notify their interest in or a change to their interest
in the Company under the Disclosure Guidance and Transparency Rules of the UK
Financial Conduct Authority.

 

AIM Rule 17

In accordance with AIM Rule 17, following the subscription by Suay Chin for
107,142,857 Placing Shares, on Admission Suay Chin's shareholding in the
Company will increase to 2,397,614,425 Ordinary Shares, which will represent
approximately 14.18 per cent. of the Company's then issued share capital.

 

The notification below, which has been made in accordance with the
requirements of the UK Market Abuse Regulation, provides further details.

**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/Nick Harriss/Liz Kirchner                                                                                      Tel: 020 3328 5656

 SP Angel Corporate Finance LLP, Financial Adviser & Broker

 John Mackay, Adam Cowl                                                                                                       Tel: 020 3470 0470

 St Brides Partners Ltd, Financial PR

 Susie Geliher/Ana Ribeiro                                                                                                    Tel: 020 7236 1177

 1                      Details of the person discharging managerial responsibilities / person closely
                        associated
 a)                     Name

Bernard Aylward                       CEO
                                                                                     Qingtao Zeng                          Non-Executive Director

 

 2                      Reason for the notification
 a)                     Position/status                                              See 1a above
 b)                     Initial notification /Amendment                              Initial notification

 3                      Details of the issuer, emission allowance market participant, auction

                      platform, auctioneer or auction monitor

 a)                     Name                                                         Kodal Minerals plc
 b)                     LEI                                                          213800VKFS7TS32EGI81
 4                      Details of the transaction(s): section to be repeated for (i) each type of

                      instrument; (ii) each type of transaction; (iii) each date; and (iv) each
                        place where transactions have been conducted
 a)                     Description of the financial instrument, type of instrument  ordinary shares of 0.03125p

                        Identification code                                          GB00BH3X7Y70
 b)                     Nature of the transaction                                    Subscription for new ordinary shares

 c)                     Price(s) and volume(s)                                       PDMR                                  price  volume
                                                                                     Bernard Aylward                       0.28p  5,357,143
                                                                                     Qingtao Zeng                          0.28p     5,142,857

 
 d)                     Aggregated information                                       n/a

                        - Aggregated volume

                        - Price
 e)                     Date of the transaction                                      3 May 2022
 f)                     Place of the transaction                                     Outside of a trading venue

 

 

 

2

Reason for the notification

a)

Position/status

See 1a above

b)

 

Initial notification /Amendment

Initial notification

3

 

Details of the issuer, emission allowance market participant, auction
platform, auctioneer or auction monitor

a)

Name

Kodal Minerals plc

b)

LEI

213800VKFS7TS32EGI81

4

 

Details of the transaction(s): section to be repeated for (i) each type of
instrument; (ii) each type of transaction; (iii) each date; and (iv) each
place where transactions have been conducted

a)

 

Description of the financial instrument, type of instrument

Identification code

ordinary shares of 0.03125p

GB00BH3X7Y70

b)

Nature of the transaction

Subscription for new ordinary shares

 

c)

Price(s) and volume(s)

 PDMR                                  price  volume
 Bernard Aylward                       0.28p  5,357,143
 Qingtao Zeng                          0.28p     5,142,857

 

d)

Aggregated information

- Aggregated volume

- Price

n/a

 

e)

Date of the transaction

3 May 2022

f)

Place of the transaction

Outside of a trading venue

 
 
 
 

 

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