Kodal Minerals PLC £250,000 Fundraise (3472R)

TIDMKOD

RNS Number : 3472R

Kodal Minerals PLC

28 October 2019

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"). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

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

28 October 2019

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

GBP250,000 fundraise

Kodal Minerals, the mineral exploration and development company focused on its Bougouni Lithium Project in southern Mali, is pleased to announce that it has raised a total of GBP250,000, before expenses (the 'Fundraise').

The Fundraise comprises a placing and subscription of 250,000,000 new ordinary shares of 0.03125p each ('Ordinary Shares') at a price of 0.05 pence per share ('Placing Shares') ('Placing'), as well as the placing out at the same price of 0.05 pence per share of the 250,000,000 Ordinary Shares allotted to SVS Securities plc ('SVS') in a fundraise announced in July 2019 ('SVS Shares').

As noted in previous announcements, SVS went into special administration on 5 August 2019 and subsequently defaulted on its contractual commitment to pay for the SVS Shares. The SVS Shares were issued and admitted to trading on AIM on 2 August 2019 but not delivered to SVS and have remained under the control of the Company. The Company will seek to recover from SVS the shortfall between the price at which the SVS Shares have now been placed of 0.05 pence per share and the original price which SVS contracted to pay of 0.08 pence per share as well other costs incurred by the Company as a result of SVS's default.

Bernard Aylward, Chief Executive, said: "We are pleased to have completed this fundraising to place out the SVS Shares and raise the resulting shortfall in funds from our July placing.

"Work at the Bougouni Lithium Project continues as expected and we hope to hear positive news shortly in respect of the Environmental and Social Impact Assessment, the final addendum of which was lodged in early October 2019.

"The Company has completed the metallurgical test work, plant design and engineering studies and is close to finalising the Feasibility Study to support its application for a Mining Licence, which is expected to be submitted later in this quarter."

Details of the Placing

The Placing will result in the issue of 250,000,000 Placing Shares, representing approximately 2.7 per cent. of the Company's issued ordinary share capital as enlarged by the Placing.

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 31 October 2019 ('Admission'). 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 existing share authorities to issue new shares on a non-pre-emptive basis.

Total Voting Rights

Upon Admission, the issued share capital of the Company will consist of 9,246,741,119 Ordinary Shares. The Company holds no shares in treasury. The total number of voting rights in the Company from Admission will therefore be 9,246,741,119. 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 FCA's Disclosure Guidance and Transparency Rules.

Market Abuse Regulation (MAR)

MAR came into effect from 3 July 2016. Market soundings, as defined in MAR, were taken in respect of the Placing with the result that certain persons became aware of inside information, as permitted by MAR. That inside information is set out in this announcement and has been disclosed as soon as possible in accordance with paragraph 7 of article 17 of MAR. Therefore, those persons that received inside information in a market sounding are no longer in possession of inside information relating to the Company and its securities.

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: [phone] 
                                                5656 
 SP Angel Corporate Finance LLP, Financial 
  Adviser & Broker                              Tel: [phone] 
  John Mackay                                   0470 
 St Brides Partners Ltd, Financial PR 
  Catherine Leftley/Cosima Akerman              Tel: [phone] 
                                                1177 
 

About Kodal Minerals

Kodal Minerals' primary focus is on the rapid advancement towards production of its flagship Bougouni Lithium Project in Southern Mali. The JORC Resource Estimate places the Bougouni Project in the top 15 hard rock lithium projects globally and was calculated using only three of the eight currently recognised prospects demonstrating the significant exploration upside potential remaining across the 450km(2) project area. The Mineral Resource estimate for the Ngoualana, Sogola-Baoule and Boumou prospects are tabulated below. These mineral resources are reported in accordance with the JORC Code:

 
 Prospect         Indicated                     Inferred                      Total 
                                    Contained                     Contained                     Contained 
                           Li(2)     Li(2)               Li(2)     Li(2)               Li(2)     Li(2) 
                  Tonnes    O%       O          Tonnes    O%       O          Tonnes    O%       O 
                   (Mt)     Grade    (kt)        (Mt)     Grade    (kt)        (Mt)     Grade    (kt) 
                 -------  -------  ----------  -------  -------  ----------  -------  -------  ---------- 
 Sogola_Baoule    8.4      1.09     91.9        3.8      1.13     42.8        12.2     1.10     134.8 
                 -------  -------  ----------  -------  -------  ----------  -------  -------  ---------- 
 Ngoualana        3.1      1.25     39.2        2.0      1.12     22.1        5.1      1.20     61.3 
                 -------  -------  ----------  -------  -------  ----------  -------  -------  ---------- 
 Boumou                                         4.0      1.02     40.4        4.0      1.02     40.4 
                 -------  -------  ----------  -------  -------  ----------  -------  -------  ---------- 
 TOTAL            11.6     1.13     131.2       9.7      1.08     105.3       21.3     1.11     236.5 
                 -------  -------  ----------  -------  -------  ----------  -------  -------  ---------- 
 

Notes: Mineral resources are reported using a 0.5%Li(2) O cut-off. Figures may not sum due to rounding. The contained metal is determined by the estimated tonnage and grade.

The Bougouni Project and recently acquired 200km(2) Bougouni West project are located in an emerging lithium province that is already attracting the attention of investors and off-take partners interested in securing a long-term supply of lithium. With the support of its strategic investor and off-take partner Suay Chin International Pte, a Singapore-based lithium and chemical trader, Kodal Minerals is well positioned to continue its ambitious development programme at Bougouni.

Further to this, Kodal Minerals is the manager of additional lithium and gold projects that are undergoing low cost exploration programmes in addition to JV funded gold properties in Cote d'Ivoire that offer potentially significant long-term value.

Information to Distributors

Solely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended ("MiFID II"); (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II; and (c) local implementing measures (together, the 'Product Governance Requirements'), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any "manufacturer" (for the purposes of the Product Governance Requirements) may otherwise have with respect thereto, the Placing Shares have been subject to a product approval process, which has determined that the Placing Shares are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in MiFID II; and (ii) eligible for distribution through all distribution channels as are permitted by MiFID II (the 'Target Market Assessment'). Notwithstanding the Target Market Assessment, investors should note that: the price of the Placing Shares may decline and investors could lose all or part of their investment; Placing Shares offer no guaranteed income and no capital protection; and an investment in Placing Shares is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Placing. Furthermore, it is noted that, notwithstanding the Target Market Assessment, only investors who have met the criteria of professional clients and eligible counterparties have been procured. For the avoidance of doubt, the Target

Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to Placing Shares.

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 [e-mail] or visit www.rns.com.

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October 28, 2019 07:31 ET (11:31 GMT)