Kodal Minerals PLC (LON:KOD) said it has raised £3.5mln through an oversubscribed share placing that it says will be used to support exploration, drilling and development activities at its flagship Bougouni lithium project in Mali as well as priority gold assets in the country and in Cote d’Ivoire.
The AIM-listed firm said it has placed 2.8bn new shares at a price of 0.125p each, a 21.9% discount to its closing price on Thursday, and are expected to be admitted to trading on March 25.
Kodal said the proceeds will be used to explore priority targets in its suite of gold projects which it said have been identified for “the potential to define JORC compliant mineral resources quickly as well as having potential to host large scale gold mineralisation”.
Priority targets for the exploration campaign include Kodal’s Fatou gold project and the Bougouni lithium project in Mali, as well as the Nielle and Dabakala gold projects in Cote d’Ivoire.
“We are delighted with the fantastic support we have received in undertaking this significantly oversubscribed placing for £3.5mln. The fundraise puts us in a strong position to be able to focus on carrying out further exploration work across our portfolio including drilling campaigns at our priority gold assets, Fatou, Nielle and Dabakala. Crucially, the placing funds will be deployed to help bring the Bougouni Lithium Project into production post grant of a mining licence by the appropriate authorities, and I am very much looking forward to being able to announce this development in due course”, Kodal chief executive Bernard Aylward.
“As our shareholders will be aware, as a company we remain bullish with regards to the lithium market thanks to the vital role it has to play in achieving a greener future. At Kodal, we are excited to be playing our own part in the global effort that is driving the planet towards a more sustainable and environmentally friendly future. I firmly believe that Bougouni is ideally positioned to take advantage of the anticipated lithium supply deficit, predicted for 2023/4, caused by too few lithium projects coming on stream to match the growing rate of demand. I look forward to providing further updates in due course”, he added.
Shares in the firm were 18.2% lower at 0.14p in late-afternoon trading on Friday.