Bernard Aylward, CEO of Kodal Minerals talks about today’s RNS update

Kodal Minerals, the mineral exploration and development company, announces that it has received the final payment in regard to the equity subscription agreement (the “Subscription Agreement”) with Singapore-based Suay Chin International Pte Ltd (“Suay Chin”). The Company has received the final amount of £330,968 and, in accordance with the Subscription Agreement, will issue 87,096,953 new ordinary shares (“Shares”) to Suay Chin at a price of £0.0038 per share (the “Subscription Shares”).

This receipt completes the Suay Chin subscription following which it will have subscribed a total of £4,825,266 for 1,304,894,645 Shares which will represent 20.0% of the Company’s enlarged issued share capital.

Share Talk caught up with CEO Bernard Aylward this morning to discuss the news. See podcast below.

In summary, Kodal has now received from Suay Chin the following subscription investments:

· Subscription of £500,000 at 0.30 pence per Share for 166,666,667 Shares as announced on 10 March 2017;

· Subscription of £3,300,000 at 0.38 pence per Share for 868,421,052 Shares as announced on 8 May 2017;

· Subscription of £694,297 at 0.38 pence per Share for 182,709,973 Shares as announced on 31 July 2017; and

· Subscription of £330,968 at 0.38 pence per Share for 87,096,953 Shares as announced today.

The final 87,096,953 Subscription Shares will be issued 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 8 November 2017.

Bernard Aylward, CEO of Kodal Minerals, said:

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“This final payment from Suay Chin completes a significant investment into Kodal and has provided us with sufficient funding to undertake our major exploration and definition programme at the Bougouni Lithium project. This final payment confirms the ongoing support and interest of Suay Chin in assisting Kodal in the rapid delineation of the Lithium mineralisation at Bougouni.”

Following the completion of the Subscription Agreement, under the terms of the Relationship Agreement as set out in the announcement on 8 May 2017, Suay Chin has the right to nominate a Director to the Board of Kodal. The Company and its nominated adviser will undertake due diligence and verification of the proposed Board nominee, and will look to appoint the new Director as soon as possible.

In addition, completion of the Subscription Agreement includes an undertaking for the Company and Suay Chin to seek to negotiate an extended off-take agreement (“Off-take Agreement”) on the basis of the agreed Off-take Term Sheet, as previously announced on 8 May 2017. The parties will commence negotiating the Off-take Agreement as soon as reasonably practicable following completion of a scoping study at the Company’s Bougouni Lithium Project in Southern Mali (the “Project”). The Off-take Term Sheet sets out certain agreed off-take principles which will be incorporated in any Off-take Agreement. These principles include the parties agreeing to buy and sell between 80% and 100% of the spodumene product produced at the Project for a period of three years as well as the right for Suay Chin to match any third party off-take terms agreed for a further period of three years following the expiry of the Off-take Agreement.

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Suay Chin has previously entered into a lock-in agreement under which it is unable to dispose of any Shares in the Company for 12 months from 12 May 2017 and must adhere to orderly market principles for a further 12 months thereafter.

Total Voting Rights

With effect from Admission, the Company’s issued share capital will consist of 6,524,482,828 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 6,524,482,828. 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.

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