Kodal Minerals PLC Update re Equity Subscription Agreement (5076M)

TIDMKOD

RNS Number : 5076M

Kodal Minerals PLC

31 July 2017

Prior to publication, the information contained within this announcement was 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, this information is now considered to be in the public domain.

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

31 July 2017

Kodal Minerals plc

('Kodal Minerals' or 'the Company')

Update re Equity Subscription Agreement and total voting rights

Kodal Minerals, the mineral exploration and development company, provides an update to its announcements of 8 May 2017 and 1 June 2017 regarding an equity subscription in the Company of approximately GBP4.8 million by Singapore-based Suay Chin International Pte Ltd ("Suay Chin"). Following Suay Chin's initial investment of GBP500,000 in the Company for 166,666,667 ordinary shares ("Shares") at GBP0.003 per Share, Suay Chin and the Company entered into an agreement (the "Subscription Agreement") for Suay Chin to complete a further investment of up to GBP4.3 million in the Company by way of a further subscription for up to 1,138,227,978 Shares ("Subscription Shares") at GBP0.0038 per Share in two tranches (the "Further Subscription").

The first tranche of the Further Subscription for GBP3,300,000 was completed with the admission to trading on AIM of 868,421,052 Subscription Shares on 12 May 2017.

The second tranche of the Further Subscription is for GBP1,025,266, of which Kodal Minerals has received approximately GBP694,297 and therefore approximately GBP330,969 remains outstanding (the "Final Amount"). Suay Chin has advised the Company that it intends to honour its subscription in full and the Company acknowledges that Suay Chin has made, and is continuing to make, significant efforts to complete the Further Subscription and, therefore, the Company and Suay Chin have mutually agreed to extend the deadline for receipt of the Final Amount from 31 July 2017 until 31 January 2018.

Pursuant to the receipt of approximately GBP694,297, the Company has agreed to issue 182,709,973 Subscription Shares at GBP0.0038 per Share to Suay Chin, conditional on admission of the Subscription Shares to trading on AIM ("Admission"). Application will be made to the London Stock Exchange for Admission of these Subscription Shares and such Admission is expected to become effective on 4 August 2017.

Upon Admission, Suay Chin will have invested a total of GBP4,494,298 in the Company and will hold a total of 1,217,797,692 Shares, representing approximately 18.92% of the Company's then issued share capital.

On completion of the Further Subscription, as previously announced, and once Kodal Minerals has commissioned and completed a scoping study at the Company's Bougouni Lithium Project in Southern Mali (the "Project"), the Company and Suay Chin will seek to negotiate an extended off-take agreement for between 80% and 100% of the spodumene product produced at the Project for a period of three years from the commencement of commercial production.

Further update announcements will be made by the Company once the Further Subscription has completed.

Total Voting Rights

With effect from Admission, the Company's issued share capital will consist of 6,437,385,875 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 6,437,385,875. 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 issued share capital of the Company.

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, AIM Nominated 
  Adviser                                     Tel: [phone] 
  Jeremy Porter/Nick Harriss                  5656 
 SP Angel Corporate Finance LLP, 
  Financial Adviser & Broker                  Tel: [phone] 
  John Mackay                                 0470 
 St Brides Partners Ltd, Financial 
  PR                                          Tel: [phone] 
  Susie Geliher/Lottie Brocklehurst/Megan     1177 
  Dennison 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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July 31, 2017 02:01 ET (06:01 GMT)