Kodal Minerals acquires International Goldfields, appoints CEO

Mineral exploration and development company Kodal Minerals announced on Friday it has completed its acquisition of International Goldfields (Bermuda), as well as a £0.68m fundraising.

The AIM-traded company said International Goldfields controls a portfolio of “highly prospective” gold properties in Côte d'Ivoire and Mali.

Its portfolio includes eight mineral licences and two licence applications covering a collection of targets on the West African Birimian Greenstone Belt.

International Goldfields also has existing joint venture and farm-in agreements on four licence areas with Newcrest Mining and Resolute Mining, with an aggregate exploration spend of up to $4.7m.

As part of the acquisition, Kodal said experience geologist Bernard Aylward has been appointed as chief executive officer.

“The gold portfolio provides us with exposure to a proven gold district in West Africa that contains a number of multimillion ounce mining operations,” said Kodal chairman David Jones.

“The joint ventures already achieved with Resolute and Newcrest are a validation of the quality of the ground selection and of our strategy.

“We are looking forward to working with someone of Bernard's proven ability and furthering our business model of identifying projects with potential and sourcing experienced and well-resourced mining operators as joint venture partners to drive their development,” he added.

Newly-appointed CEO Aylward said he is looking forward to assisting in the company’s diversification strategy, and continuing the strategy of acquisition with early low-cost exploration.

“The projects generated to date are of a quality to have attracted partners with proven gold pedigrees who have agreed to invest up to $4.7m exploration and development finance, allowing us to free carry on the potential upside.

“We look forward to advancing our activities across our jurisdictions and building significant value for shareholders,” he explained.

The company also confirmed it has raised £0.68m before expenses through the issue of 1.7 billion new ordinary shares in a placing and subscription with new and ordinary shareholders, at a placing price of 0.04p per share.

Kodal’s board said the net placing proceeds will be applied to the progression of its assets in West Africa and Norway, and its working capital requirements.

Markets approved of the moves, with Kodal shares up 2.74% at 0.05p at 1200 BST.