Bougouni Funding – Extension of Long Stop Date

Kodal Minerals PLC

31 August 2023

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018

Kodal Minerals Plc / Index: AIM / Epic: KOD / Sector: Mining

31 August 2023

Kodal Minerals plc

("Kodal Minerals", "Kodal" or the "Company")

Bougouni Lithium Project Funding Package - Extension of Long Stop Date

Kodal Minerals, the mineral exploration and development company focused on lithium and gold assets in West Africa, announces that the Company, Kodal Mining UK Limited ("KMUK" - the Company's UK registered subsidiary formed to be the holder of the Mali lithium assets), Hainan Mining Co. Limited ("Hainan") and Hainan's wholly owned UK-incorporated subsidiary Xinmao Investment Co. Limited ("Xinmao") have approved an extension of the previously agreed deadline of 31 August 2023 for the completion of the funding package announced on 19 January 2023.  The deadline has now been extended to 30 September 2023.

Kodal has now completed the majority of items for the restructure of the Company's Mali subsidiary entities that hold the lithium interests.  The Company has completed the full registration of the new mining company, Le Mines de Lithium de Bougouni SA ("LMLB"), that is a 100% subsidiary of KMUK.  In addition, the Company is finalising the transfer of the shareholding of Future Minerals SARL to also be 100% owned by KMUK.  Kodal is continuing to work with the Mali Government to finalise the remaining compliance items that will complete the conditions precedent for the Funding Transaction. Hainan and Xinmao have confirmed that all approvals obtained from the Chinese Government remain valid and are ready to complete the transaction as and when the outstanding conditions precedent are satisfied.

Bernard Aylward, CEO of Kodal Minerals, remarked: "Kodal and Hainan continue to work together to finalise the transaction as well as continuing the pre-development work to allow a rapid transition to the construction phase when the Funding Transaction is complete.  In August, Hainan completed a pre-payment of US$3.5M to Kodal and these funds are being utilised for engineering design work and metallurgical testing, and also for the Mineral Resource update that is being undertaken now. Kodal will be hosting several senior executives from the Hainan and Fosun groups in Mali during September as we work towards finalising our agreed work programme.

"Kodal's team met with the new Minister of Mines for Mali, Professor Amadou Keita, in Bamako during August and was able to provide an update of all our activities.  The Minister of Mines acknowledged the progress and the investment the partners will be making in Mali and continued to express the Government's support for the project and all assistance that the Ministry can provide."

**ENDS**

For further information, please visit www.kodalminerals.com or contact the following:

Kodal Minerals plc Bernard Aylward, CEO	Tel: [phone]
Allenby Capital Limited, Nominated Adviser Jeremy Porter/Vivek Bhardwaj/Nick Harriss	Tel: [phone]
SP Angel Corporate Finance LLP, Financial Adviser & Joint Broker John Mackay/Adam Cowl	Tel: [phone]
Canaccord Genuity UK LLP, Joint Broker James Asensio/Gordon Hamilton	Tel: [phone]
St Brides Partners Ltd, Financial PR Susie Geliher/Ana Ribeiro	Tel: [phone]

 

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