Kodal Minerals PLC Placing to Advance Bougouni Lithium Project (6015T)
January 09 2017 - 2:00AM
UK Regulatory
TIDMKOD
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 GBP1,000,000, 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 GBP1 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 500km(2)
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 Tel: 020 3328
Jeremy Porter/Nick Harriss 5656
----------------------------------- ----------------
SP Angel Corporate Finance LLP,
Financial Adviser & Broker Tel: 020 3470
John Mackay/Laura Harrison 0470
----------------------------------- ----------------
St Brides Partners Ltd, Financial
PR Tel: 020 7236
Susie Geliher/Lottie Brocklehurst 1177
----------------------------------- ----------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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