Kodal secures another $1.5m funding for development projects

The AIM-traded firm said the agreement had an initial advance of $0.75m, adding that the funding would enable it to accelerate its planned activities across a range of projects.

At the flagship Bougouni Lithium Project in Mali, it said it would be used for licence payments for the expected award of the mining licence, and continued engineering development studies, as well as further work in connection with offtake and financing arrangements.

It would also be used for exploration work to further develop the potential at its gold projects, including air core drilling at the Nangalasso project in Mali, and geochemical sampling and geological mapping at the Dabakala project in Cote d'Ivoire.

The board said it would also help the company explore new investment opportunities identified in the gold space.

Key terms of the loan agreement included that advances had a 15-month term, and carried interest at a rate of 9.85% per annum, payable monthly.

Investors had the option to convert outstanding principal and interest into new ordinary shares in the firm, while the company could repay the loan at any time in cash.

Investors would be issued with warrants exercisable into ordinary shares in Kodal Minerals, at a premium to the current share price, the board confirmed.

“As previously announced on 6 April, the company entered into a £0.5m subscription agreement and associated equity sharing agreement with the Investors, under which it is receiving monthly payments based on the company's share price during that month,” the board said in its statement.

“To date, the facility has performed ahead of management expectations, with over £0.19m received by the end of June.

“Payments to the company under the equity sharing agreement will continue on a monthly basis.”

To further accelerate progress and deliver value to shareholders, the board said the new loan agreement would provide it with $0.75m immediately, and the option to drawdown an additional $0.75m.

“In conjunction with monthly equity sharing agreement payments, this funding ensures that the company has sufficient capital resources to progress development work on the Bougouni Project, satisfy the fee for the mining licence once formally awarded and also fund the exploration work at the company's gold projects.

“In addition, this funding will enable the Company to look at new opportunities in the gold space.”

At 1347 BST, shares in Kodal Minerals were down 6% at 0.047p.