Kodal Minerals (KOD)

 

LSE:KOD: Placing to Advance Bougouni Lithium Project

Kodal Minerals

09 Jan 2017 07:00:09

Kodal Minerals PLC

RNS Number : 6015T
Kodal Minerals PLC
09 January 2017
 

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

 

9 January 2017

Kodal Minerals Plc

 

("Kodal" or the "Company")

 

Placing to Accelerate Development of High Grade Bougouni Lithium Project

 

Kodal, the mineral exploration and development company with interests in West Africa, is pleased to announce that the Company has raised a total of £1,000,000, before expenses, through a placing of 666,666,667 new ordinary shares of 0.03125 pence each ("Placing Shares") at a price of 0.15 pence per share (the "Placing") with a range of new and existing investors.  

 

Bernard Aylward, CEO of Kodal Minerals, said: "The Company's recent exploration activity at the Bougouni Lithium Project continues to highlight the high grade lithium mineralisation and the potential of the project to host significant mineralisation.  This Placing will allow the Company to accelerate our exploration activities with a further programme of drilling to follow on from the recently completed work as well as to test the newly identified high-grade pegmatite veins.

 

"The excitement in the lithium market is continuing to build and the exploration and discovery of high-grade lithium mineralisation is rapidly developing in Mali.  The recent announcement of a proposed sale of the neighbouring lithium project owned by Australian Stock Exchange listed Birimian Limited to a Chinese buyer for A$107.5 million highlights the strategic value being placed on high grade Malian lithium projects, and the value which can be achieved through exploration.  With this in mind we are keen to accelerate and expand our exploration programme.

 

"This is clearly a strategy which is supported by our shareholders and I am delighted to announce this oversubscribed placing to raise £1 million.  These funds will enable us to ramp up our exploration campaign and deliver on our near term milestones."

 

The net proceeds of the Placing will be used to advance and accelerate the exploration programme at the Company's 500km2 Bougouni Lithium Project in Mali ("Bougouni"), fund certain exploration activities across its 100% owned gold properties, in addition to funding working capital requirements.  Recent work, including reverse circulation ("RC") drilling and rock chip sampling, has continued to highlight the prospectivity of the Bougouni Project with the results of the RC drilling programme expected to be announced by the end of January 2017. The Board intends to accelerate development at Bougouni in the near term including drilling at some of the newly identified pegmatite veins as well as follow up work based on the drill results once received.

 

In addition, the Company has issued a total of 6,666,667 new ordinary shares of 0.03125 pence each at a price of 0.15 pence per share ("Fee Shares") to one of its advisers in accordance with its contractual arrangements.

 

Application will be made to the London Stock Exchange for the Placing Shares and the Fee Shares (together the "New Ordinary Shares") to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective and that dealings in the New Ordinary Shares will commence on or around 13 January 2017.

 

The New Ordinary Shares will represent approximately 12.9% of the Company's issued share capital as enlarged by the issue of the New Ordinary Shares.

 

Total Voting Rights

Following the issue of the New Ordinary Shares and with effect from Admission, the Company's issued share capital will consist of 5,219,588,183 Ordinary Shares, with one voting right per share. The Company does not hold any ordinary shares in treasury.  Therefore, the total number of Ordinary Shares and voting rights in the Company will be 5,219,588,183 . This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company.

 

**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

 

 

Tel: 020 3328 5656

SP Angel Corporate Finance LLP, Financial Adviser & Broker

John Mackay/Laura Harrison

 

 

Tel: 020 3470 0470

St Brides Partners Ltd, Financial PR

Susie Geliher/Lottie Brocklehurst

 

 

Tel: 020 7236 1177

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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