Kodal Minerals PLC (KOD.L) Update on ESA, warrant exercise and comment on MoU

Kodal Minerals, the mineral exploration and development company, provides an update on its equity sharing agreement (the “ESA”) with Riverfort Global Opportunities PCC Limited and YA II PN Ltd (the “Investors”), details of which were announced on 7 April 2020.

The Company has been informed that the Investors have sold all the ordinary shares of 0.03125p each in the Company (“Ordinary Shares”) issued to them under the terms of the ESA. This has concluded the ESA and resulted in the Company receiving total cash proceeds of £654,000 and reflects a positive result for the Company compared with the £500,000 subscription agreement entered into at the commencement of the ESA. The Company also notes that the ESA has been completed in under six months.

In connection with the ESA, the Investors were issued with warrants to subscribe for 228,571,428 new Ordinary Shares, exercisable for a period of three years from the date of the ESA at a price of 0.04375p per Ordinary Share. The Investors have elected to exercise these warrants in full at an aggregate exercise price of £100,000.

Application will be made for the 228,571,428 new Ordinary Shares being issued on exercise to be admitted to trading on AIM and it is expected that admission will take place on or around 10 September 2020 (“Admission”).

For the avoidance of doubt, there are no further payments to be made or received or shares to be issued pursuant to the ESA.

Comment on MoU with Sinohydro Corporation Limited (“Sinohydro”)

The Company notes the recent positive movement in its share price, which it believes is due principally to the announcement of its MoU with Sinohydro on 1 September 2020. The Company believes that the MoU with Sinohydro in respect of the Company’s Bougouni Lithium Project is an extremely positive development and whilst legally binding on the parties during the exclusivity period in the first six months, there can be no guarantees as to its outcomes nor that it will ultimately lead to financing of the Bougouni Lithium Project or an EPC contract being entered into with Sinohydro or any other party.

Total Voting Rights

Upon Admission, the issued share capital of the Company will consist of 11,339,194,566 Ordinary Shares. The Company does not hold any shares in treasury. Therefore, the total number of voting rights in the Company from Admission will be 11,339,194,566 . 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 FCA’s Disclosure Guidance and Transparency Rules.

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