Update on Gold Assets and Funding Agreement

RNS Number : 8332L

Kodal Minerals PLC

15 January 2021

 

Certain information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

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

  15 January 2021

Kodal Minerals plc ('Kodal Minerals' or the 'Company')

Update on Gold Assets, the Fatou Project and Funding Agreement

Kodal Minerals, the mineral exploration and development company focused on gold and its Bougouni Lithium Project in West Africa, is pleased to provide an update on its gold exploration projects in southern Mali and Cote d'Ivoire.  Further, the Company provides an update on the Fatou Gold Project and proposed Funding Agreement announced on 17 December 2020 to provide up to US$2,500,000 from AIM-quoted Riverfort Global Opportunities plc and Riverfort Global Opportunities PCC (together the 'Investors').

Highlights

·  Review of the Fatou Gold Project ('Fatou') in Mali continuing with further field reconnaissance highlighting extensive artisanal workings and geological control on mineralisation.

o  Drilling programme being finalised with initial diamond drilling and Reverse Circulation ('RC') drilling planned for Fatou Main and Fininko prospects.

o  On-going review of historic drilling is highlighting zones of high-grade mineralisation that will be followed-up as a priority.

· Kodal completed 508 surface geochemical samples at Dabakala project in Côte d'Ivoire to infill the extensive 8km x 2km surface anomaly.

o  Extensive artisanal workings identified along the strike of the geochemical anomaly further enhancing the Dabakala target zone.

· Good progress made with the Investors in finalising the proposed Funding Agreement with due diligence nearing completion and documentation in progress - due to delays over the Christmas period an extension of two weeks has been granted to the Investors for completion of due diligence and completion of final contract.

Bernard Aylward, CEO of Kodal Minerals, commented: "We are looking forward to commencing drilling at the Fatou Project as soon as possible once the Funding Agreement is finalised.  The review is continuing to highlight opportunities to extend the previously defined gold prospect, as well as priority exploration targets.  The focus of the drilling will initially be to confirm findings of previous drilling and geological information, however, we will also be targeting extensions to the mineralised structure to determine the size potential of the Fatou Project.

"The extensive artisanal workings at the Dabakala project in Côte d'Ivoire that have developed along strike of our previously defined surface geochemical anomaly are a positive indication of this area.  We are awaiting the assay results for the sampling and will be looking to continue to advance this prospect through a maiden drilling programme this field season.

"We have been working closely with the Investors to finalise the due diligence and drafting of the final agreements for the proposed US$2,500,000 exploration funding to be used to progress the work on our gold projects.  As requested by the Investors, we have agreed to extend the due diligence period by two weeks due to delays over the Christmas period, however, the process is well advanced.  Kodal has received the initial funding advance of US$300,000 under the Term Sheet for the proposed Funding Agreement and has completed the stage 1 consideration payments for the acquisition of the Fininko and Fouti è re concessions that form the Fatou Project.  I look forward to providing further updates in due course."

Fatou Project Update

A full summary of the historic exploration, geological setting and acquisition terms of the Fatou Project in southern Mali was provided in the Company announcement of 17 December 2020.

The Company has undertaken further field reconnaissance and planning of the maiden drilling programme is to commence as soon as possible once the Funding Agreement is finalised.  The Company is finalising contract details with the drilling contractor to undertake the exploration programme and will look to secure ongoing drilling for the Fatou Project and Kodal's additional gold assets in Cote d'Ivoire and Mali.

Funding Agreement Update

As announced on 17 December 2020, the Company has entered into a Term Sheet for a proposed Funding Agreement to provide up to US$2,500,000 from the Investors to advance Kodal's gold assets and support the acquisition and exploration of the Fatou Gold Project. 

Kodal has received the initial US$300,000 of funding advance under the Term Sheet and has completed the stage 1 consideration payments for the acquisition of the Fininko and Foutière concessions that form the Fatou Gold Project.

The due diligence on the Company's gold assets being completed by the Investors includes technical geological review, tenure licencing and subsidiary company review as well as financial and legal review.  The process is well advanced, however, some delays over the Christmas period have been experienced and the Investors requested, and Kodal has agreed to, a two-week extension to the due diligence period and for finalisation of the Funding Agreement, which now have a deadline of 30 January 2021.  

Dabakala Project

The Company has completed an infill surface geochemical sampling programme at the Dabakala project in Côte d'Ivoire to add definition to the previously defined anomalous zone.  The sample spacing has been infilled to a nominal 200m line spacing and 50m samples spacing and will be suitable to provide targeting for initial air core reconnaissance drilling.

The geological mapping that occurred in conjunction with the sampling highlighted shear zones and quartz veining that was the target for the extensive artisanal workings.  A programme of field mapping and sampling of the workings will be undertaken to assist in the targeting of the future drilling.

The Dabakala anomaly is a new area of surface anomalism defined by Kodal exploration and no previous drilling has occurred in the area.

**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/Nick Harriss/Liz Kirchner	Tel: [phone]
SP Angel Corporate Finance LLP, Financial Adviser & Broker John Mackay, Adam Cowl	Tel: [phone]
St Brides Partners Ltd, Financial PR Susie Geliher/Cosima Akerman	Tel: [phone]

 

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