Last checked at 12 Aug 2019 07:00
Kodal Minerals Plc / Index: AIM / Epic: KOD / Sector: Mining
12 August 2019
Kodal Minerals plc ("Kodal Minerals" or the "Company")
Issue of Equity Update
Kodal Minerals provides a further update to its announcement of 6 August 2019 regarding the commitment of SVS Securities plc ("SVS") to subscribe for 250,000,000 Ordinary Shares in the placing announced on 29 July 2019 (the "Placing"), for a total consideration of £200,000, and the entering of SVS into special administration on 5 August 2019.
The settlement of SVS's participation in the Placing was due to settle on a delivery versus payment basis in CREST today. However, the Company understands that settlement of SVS's trades in CREST have been suspended and that SVS's Placing participation will not complete today as anticipated. The Company, via its broker, will be seeking clarification from the special administrators of SVS as to whether they intend to comply with SVS's payment obligations pursuant to the Placing. Further updates will be provided by Kodal Minerals as soon as it has clarity from SVS's administrators. However, it is possible that the Company may not receive the contracted £200,000 from SVS to allow the Company to complete its transaction with SVS in the near future, or at all.
Notwithstanding the shortfall of funds raised in the Placing, the Company will be continuing to advance its development of its Bougouni lithium project in Mali as described in its announcement on 29 July 2019, including the submission of its Environmental and Social Impact Assessment, completion of metallurgical test work and mine design engineering leading to its application for a mining licence in the second half of 2019. However, the Company may delay the exploration and expansion drilling it was planning to undertake in October 2019 following the rainy season.
The Company notes the London Stock Exchange's Market Notice N10/19 "Declaration of Default - SVS Securities Plc" published on 9 August 2019 and which can be viewed at:
https://www.londonstockexchange.com/traders-and-brokers/rules-regulations/change-and-updates/stock-exchange-notices/2019/n1019.pdf
For further information, please visit www.kodalminerals.com or contact the following:
Kodal Minerals plc Bernard Aylward, CEO |
Tel: +61 418 943 345
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Allenby Capital Limited - AIM Nominated Adviser Jeremy Porter/Nick Harriss
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Tel: 020 3328 5656 |
SP Angel Corporate Finance LLP - Financial Adviser & Broker John Mackay
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Tel: 020 3470 0470 |
St Brides Partners Ltd - Financial PR Catherine Leftley/Cosima Akerman
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Tel: 020 7236 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 450km2 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 | ||||||
Tonnes (Mt) | Li2O% Grade | Contained Li2O (kt) | Tonnes (Mt) | Li2O% Grade | Contained Li2O (kt) | Tonnes (Mt) | Li2O% Grade | Contained Li2O (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%Li2O 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 200km2 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 funded 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.