Kodal Minerals Regulatory News (KOD)

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

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

11 June 2018

Kodal Minerals Plc

("Kodal Minerals" or "the Company") 

Issue of Shares to Raise £1.5 million for Further Development of Bougouni Lithium Project

Kodal Minerals, the mineral exploration and development company focused on West Africa, is pleased to announce that it has conditionally raised £1.5 million (before expenses) by way of a subscription and placing of 1,153,846,149 ordinary shares of 0.03125 pence each ("Ordinary Shares") in the capital of the Company (the "Fundraising") at a price of 0.13 pence per share (the "Subscription Price"). The net proceeds from the Fundraising will be used to further the exploration and development programme at the Bougouni lithium project in Southern Mali ("Bougouni").

As part of the Fundraising, Suay Chin International Pte Ltd ("Suay Chin") is subscribing £1.2 million for 923,076,923 Ordinary Shares (the "Subscription Shares") at the Subscription Price by way of a subscription agreement between it and the Company (the "Subscription"). The Subscription Shares will be issued and admitted to trading on AIM following receipt by the Company of the Subscription proceeds, which are expected to be delivered by Suay Chin by 6 July 2018. On completion of the Subscription, Suay Chin will own 2,227,971,568 Ordinary Shares which will represent 29.0 per cent of the issued share capital of the Company.

The Subscription Shares will be subject to the existing lock-in agreement between the Company, Suay Chin and others under which all of Suay Chin's holding of Ordinary Shares are subject to orderly market restrictions until 12 May 2019.

Since Suay Chin currently holds 20 per cent of the Company's issued share capital, the Subscription is a related party transaction under the AIM Rules for Companies. Accordingly, the directors who are independent of Suay Chin (being all directors except for Qingtao Zeng) consider, having consulted with the Company's nominated adviser, Allenby Capital Limited, that the terms of the Subscription are fair and reasonable insofar as the Company's shareholders are concerned.

The balance of the Fundraising has been completed by way of a placing of 230,769,226 Ordinary Shares with existing and new shareholders of the Company at the Subscription Price. Application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective on or around 15 June 2018.

The Subscription Shares and the Placing Shares will rank pari passu in all respects with the existing Ordinary Shares.

Bernard Aylward, Chief Executive Officer of Kodal Minerals commented: "The Company welcomes the continued financial and strategic support of Suay Chin. Kodal and Suay Chin are continuing to work together on the metallurgical testwork and bulk sampling with the aim of progressing our project as rapidly as possible. As part of the initial investment by Suay Chin, Kodal and Suay Chin have agreed to negotiate a binding off-take agreement as the project advances to development, and this further investment by Suay Chin confirms its confidence in the Bougouni Lithium Project and the interest in securing supply of the spodumene concentrate.

"Our work programmes conducted across Bougouni have confirmed the presence of significant, high grade lithium mineralisation at shallow depth. Further underpinning the potential commercial value of this asset are the encouraging results from the metallurgical and processing test work.

"In line with this, we will be working towards the development of a maiden resource estimate over the summer months once we receive the assay results from the most recent drill programme. In the meantime, these new funds from Suay Chin and other investors will allow us to plan with confidence for the next drilling season later this year."

Total Voting Rights

As a result of the issue of the Placing Shares as described above, the issued share capital of the Company will consist of 6,755,252,054 Ordinary Shares from Admission.

The Company holds no shares in treasury. The total number of voting rights in the Company from Admission will therefore be 6,755,252,054. 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.

**ENDS**

For further information, please visit www.kodalminerals.com or contact the following: