Shares of Kodal Minerals PLC (AIM: KOD) experienced a 20% surge as a payment of US$3.5 million from China was received. This forms part of the funding for the Bougouni lithium project.
The funds were provided by Hainan Mining and can be either repaid or converted into Kodal shares if a funding agreement is not reached.
Kodal’s CEO, Bernard Aylward, commented: “This advance payment avoids further dilution for our shareholders and validates the confidence of both sides in finalizing the funding package.
Highlights:
· Kodal to receive a US$3,500,000 Prepayment of the subscription agreement entered into as part of the Funding Package.
· Kodal will apply the funds to the continued advancement of the Bougouni Lithium project and has sole discretion over use of funds including for general working capital.
· The Prepayment is repayable or convertible into new ordinary shares of the Company should the Funding Package not proceed.
· Kodal is completing the registration of a new company in Mali, Les Mines de Lithium de Bougouni SA (“LMLB”), and this company will be the owner of the Bougouni mining licence.
· Kodal is also commencing the process of transferring the mining licence from Future Minerals SARL to LMLB as a key condition precedent for completion of the Funding Package.
“Kodal is also collaborating with the Malian government to wrap up the establishment of the new mining company, LMLB, and the transition of the mining license to it.
“According to the Malian mining code, the Government will initially have a free-carried interest of 10% in the project with the option to acquire an additional 10% of the project.”
