Interim Results

RNS Number : 5694Z

Kodal Minerals PLC

18 December 2017

 

Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.

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

18 December 2017

Kodal Minerals plc

('Kodal Minerals' or the 'Company')

Interim Results

Kodal Minerals, the AIM quoted mineral exploration and development company, is pleased to announce its unaudited interim results for the six months ended 30 September 2017.

Bernard Aylward, CEO of Kodal Minerals, said: "We are ending 2017 and embarking on 2018 in a very strong position; we are well funded with an influential strategic investor, have a very exciting lithium project located in one of the most prolific greenstone belts globally, and are continuing with a major exploration and delineation campaign designed to assist the Company in determining the potential scope of development at our Bougouni Lithium Project.

"We have had a very busy half-year with the completion of the £4.8 million strategic investment with our offtake partner Suay Chin and we were delighted to appoint Dr Qingtao Zeng to the Board as a result.  Work on the ground has progressed rapidly and we have provided the market with positive results from our exploration work programmes.  Initial results from the current drill programme are expected very shortly and we look forward to providing further news on this, together with updates on the process and metallurgical test work.  We are confident that these results will provide further weight to our belief that Bougouni can produce a high quality, low impurity battery grade lithium carbonate."

Chairman's Statement

During the period, the Group has been actively pursuing its lithium and gold exploration programmes in West Africa focusing on the Bougouni lithium project in Mali ("Bougouni Project").

During the period, the Company completed its second drilling programme at the Bougouni Project, with a total of six prospects tested.  Drilling has consisted of reverse circulation ("RC") drilling and diamond drilling, with a total of 76 RC drill holes for 10,260 metres completed and five diamond drill holes for 362 metres completed. In particular, the Ngoualana prospect within the Bougouni Project looks extremely exciting with the strike length of the mineralised zone currently confirmed at 650 metres. This zone remains open along strike and has yielded multiple high-grade intersections including 28 metres at 1.96% lithium oxide.

Subsequent to the period end, the Company has announced the commencement of a further drill programme aimed at both expanding and defining the lithium pegmatite veins previously identified, and testing new anomalies, including those identified through ground geophysical survey work undertaken over the summer. To date, 42 holes for 5,286 metres have been completed. Samples have been sent for assay and the first results are expected imminently.

The Company has also been continuing its test work on the metallurgy and processing of the spodumene concentrate from the Bougouni Project and during the period sent a sample to Shandong Ruifu Lithium Co Ltd ("Shandong Ruifu"), one of the largest lithium carbonate producers in China. In October 2017, the Company announced that Shandong Ruifi, successfully produced a high quality, low impurity battery grade lithium carbonate from this sample.  Chemical analysis of the final lithium carbonate product reports low levels of impurities supporting its positioning as a premium product compared to many other products in the market.  Additional testwork is to be completed at an independent metallurgical laboratory to provide further confidence in the product.

The Company has also been able to confirm the completion of the investment by Suay Chin International Pte ("Suay Chin") for a total of £4,825,000, giving it a 20% shareholding in the Company. Suay Chin is a Singapore-based investment company that has extensive contacts throughout the Chinese chemical industry and in particular the market for the production and supply of lithium products. Suay Chin made an initial investment into Kodal of £500,000 in March 2017 followed by Suay Chin and the Company entering into an agreement for Suay Chin to complete a further investment of £4,325,000 in two tranches (the "Further Subscription") in May 2017.  The first instalment of the Further Subscription of £3,300,000 was completed in May 2017, the second instalment of £694,000 completed in July 2017 and, after the period end, the final instalment of £330,968 was received to complete the Further Subscription.

On completion of the Further Subscription, the previously disclosed undertaking became effective for the Company and Suay Chin to seek to negotiate an extended off-take agreement ("Off-take Agreement") on the basis of an agreed off-take term sheet.  The parties agreed to commence negotiating the Off-take Agreement as soon as reasonably practicable following completion of a scoping study at the Bougouni Project. The off-take term sheet sets out certain agreed off-take principles which will be incorporated in any Off-take Agreement. These principles include the parties agreeing to buy and sell between 80% and 100% of the spodumene product produced at the Bougouni Project for a period of three years as well as the right for Suay Chin to match any third party off-take terms agreed for a further period of three years following the expiry of the Off-take Agreement. 

Suay Chin has also entered into a lock-in agreement under which it is unable to dispose of any shares in the Company for 12 months from its initial investment in May 2017 and must adhere to orderly market principles for a further 12 months thereafter.

Following completion of the Further Subscription, Dr Qingtao Zeng, as the representative of Suay Chin, was appointed to the Kodal Board as a non-executive Director.  Dr Zeng is an experienced mining consultant and his knowledge and advice will be of great benefit to the Company as it continues to explore and develop the Bougouni Project.

In December 2017, Kodal announced it had identified an irregularity with the Kolossakoro concession that is part of the Bougouni Project.  Following subsequent discussions with the Directorate Nationale de la Géologie et des Mines ("DNGM", the Malian National directorate of Geology and Mines) the Company established that the licence may be considered to have expired as a result of EMAS not replying to correspondence sent to it by DNGM.

Furthermore, a local company, Triumvirat Mining Company SARL ("Triumvirat"), had made an application to DNGM for two new licences within the Kolassokoro licence area.  Kodal has reached an agreement with Triumvirat under which Triumvirat has withdrawn its applications and Kodal has filed new applications over two new 100 square kilometre licences covering the high priority areas within the former Kolassokoro area. If the applications are successful, Kodal will have a 90% interest in these new licences with Triumvirat having a 10% interest. Kodal will have therefore successfully maintained its 90% interest in this ground. Kodal is maintaining its exploration and definition programme at the Bougouni Project and is confident of its rights to the project area.

The Group has recorded a loss for the six month period to 30 September 2017 of £529,000 compared to £206,000 for the six months to 30 September 2016 and £1,178,000 for the year to 31 March 2017.

Cash balances as at 30 September 2017 were £4,093,000 compared to £315,000 at 30 September 2016 and £1,723,000 at 31 March 2017. Current cash as at 15 December 2017 is £3,793,000.

Robert Wooldridge

Chairman

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2017

			Unaudited 6 months to 30 September 2017		Unaudited 6 months to 30 September 2016		Audited Year ended 31 March 2017
			£		£		£
Continuing operations
Revenue			-		-		-
Impairment charge			(8,442)		(3,631)		(675,236)
Administrative expenses			(220,692)		(192,993)		(488,376)
Share based payments			(300,207)		(9,778)		(14,667)
OPERATING LOSS			(529,341)		(206,402)		(1,178,279)
Finance income			-		-		-
LOSS BEFORE TAX			(529,341)		(206,402)		(1,178,279)
Taxation			-		-		-
LOSS FOR THE PERIOD/YEAR			(529,341)		(206,402)		(1,178,279)
OTHER COMPREHENSIVE INCOME
Items that may be subsequently reclassified to profit and loss
Currency translation (loss)/gain			14,635		(7,199)		(5,497)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD/YEAR			(514,706)		(213,601)		(1,183,776)
Loss per share
Basic and diluted - loss per share on total earnings - pence per share	4		(0.0086)		(0.0068)		(0.0299)

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2016

				Unaudited  as at 30 September 2017		Unaudited as at 30 September 2016		Audited as at 31 March 2017
	Note			£		£		£
NON CURRENT ASSETS
Intangible assets	3			2,419,996		1,322,818		1,323,226
Property, plant and equipment				3,548		51,936		-
				2,423,544		1,374,754		1,323,226
CURRENT ASSETS
Other receivables				11,107		7,570		16,229
Cash and cash equivalents				4,093,007		315,340		1,722,950
				4,104,114		322,910		1,739,179
TOTAL ASSETS				6,527,658		1,697,664		3,062,405
CURRENT LIABILITIES
Trade and other payables				(226,931)		(147,439)		(325,213)
TOTAL LIABILITIES				(226,931)		(147,439)		(325,213)
NET ASSETS				6,300,727		1,550,225		2,737,192
EQUITY
Attributable to owners of the parent:
Share capital	5			2,011,684		1,179,643		1,683,206
Share premium account	5			10,234,238		5,135,992		6,784,682
Share based payment reserve				469,541		164,445		169,334
Translation reserve				11,038		(5,299)		(3,597)
Retained deficit				(6,425,774)		(4,924,556)		(5,896,433)
TOTAL EQUITY				6,300,727		1,550,225		2,737,192

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2017

	Note	Share capital		Share premium account		Share based payments reserve		Translation reserve		Retained deficit		Total equity
		£		£		£				£		£
At 31 March 2016 (audited)		328,080		4,937,405		154,667		1,900		(4,718,154)		703,898
Comprehensive income
Loss for the period		-		-		-		-		(206,402)		(206,402)
Currency translation loss		-		-		-		(7,199)		-		(7,199)
Total comprehensive income for the period		-		-		-		(7,199)		(206,402)		(213,601)
Transactions with owners
Proceeds from share issue	5	851,563		238,437		-		-		-		1,090,000
Share issue expenses	5	-		(39,850)		-		-		-		(39,850)
Share based payment		-		-		9,778		-		-		9,778
At 30 September 2016 (unaudited)		1,179,643		5,135,992		164,445		(5,299)		(4,924,556)		1,550,225
Comprehensive income
Loss for the period		-		-		-		-		(971,877)		(971,877)
Currency translation gain		-		-		-		1,702		-		1,702
Total comprehensive income for the period		-		-		-		1,702		(971,877)		(970,175)
Transactions with owners
Proceeds from shares issued		494,792		1,755,208		-		-		-		2,250,000
Share issue expenses		-		(129,147)		-		-		-		(129,147)
Shares in settlement of services		8,771		22,629		-		-		-		31,400
Share based payment		-		-		4,889		-		-		4,889
At 31 March 2017 (audited)		1,683,206		6,784,682		169,334		(3,597)		(5,896,433)		2,737,192
Comprehensive income
Loss for the period		-		-		-		-		(529,341)		(529,341)
Currency translation loss		-		-		-		14,635		-		14,635
Total comprehensive income for the period		-		-		-		14,635		(529,341)		(514,706)
Transactions with owners
Proceeds from shares issued		328,478		3,449,556		-		-		-		3,778,034
Share based payment		-		-		300,207		-		-		300,207
At 30 September 2017(unaudited)		2,011,684		10,234,238		469,541		11,038		(6,425,774)		6,300,727

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2017

			Unaudited 6 months to 30 September 2017		Unaudited 6 months to 30 September 2016		Audited Year ended 31 March 2017
	Note		£		£		£
Cash flows from operating activities
Loss before tax			(529,341)		(206,402)		(1,183,775)
Adjustments for non-cash items:
Loss on sale of property, plant and equipment			-		-		41,994
Impairment charge			8,442		3,631		675,236
Share based payments			300,207		9,778		14,667
Equity settled transactions			-		-		20,000
Operating cash flow before movements in working capital			(220,692)		(192,993)		(431,878)
Movement in working capital
(Increase)/decrease in receivables			5,122		(4,586)		(13,245)
Increase/(decrease) in payables			(83,648)		48,580		226,354
Net movements in working capital			(78,526)		43,994		213,109
Net cash outflow from operating activities			(299,218)		(148,999)		(218,769)
Cash flows from investing activities
(Purchase)/disposal of property, plant and equipment			(3,548)		-		10,000
Purchase of intangible assets			(1,083,010)		(711,314)		(961,205)
Net cash outflow from investing activities			(1,086,558)		(711,314)		(951,205)
Cash flow from financing activities
Equity settled transactions			-		410,000		-
Net proceeds from share issues			3,778,035		640,150		2,761,003
Net cash inflow from financing activities			3,778,035		1,050,150		2,761,003
Increase/(Decrease) in cash and cash equivalents			2,392,259		189,837		1,591,029
Cash and cash equivalents at beginning of the period			1,722,950		134,801		134,801
Exchange loss on cash			(22,202)		(9,298)		(2,880)
Cash and cash equivalents at end of the period			4,093,007		315,340		1,722,950

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2017

General information

Kodal Minerals plc is a public limited company incorporated and domiciled in England & Wales. The Company's shares are publicly traded on the AIM market of the London stock exchange. Kodal Minerals Plc and its subsidiaries are involved in the exploration and evaluation of mineral resources in West Africa and Norway.

Basis of preparation

These unaudited condensed consolidated interim financial statements for the six months ended 30 September 2017 were approved by the board and authorised for issue on 17 December 2017.

The basis of preparation and accounting policies set out in the Annual Report and Accounts for the year ended 31 March 2017 have been applied in the preparation of these condensed consolidated interim financial statements. These interim financial statements have been prepared in accordance with the recognition and measurement principles of the International Financial Reporting Standards ('IFRS') as adopted by the EU that are expected to be applicable to the consolidated financial statements for the year ending 31 March 2018 and on the basis of the accounting policies expected to be used in those financial statements.

The figures for the six months ended 30 September 2017 and 30 September 2016 are unaudited and do not constitute full accounts. The comparative figures for the year ended 31 March 2017 are taken from the 2017 audited accounts, which are available on the Group's website, and have been delivered to the Registrar of Companies, and do not constitute full accounts.

Going Concern

The Group has not earned revenue during the period to 30 September 2017 as it is still in the exploration and development phases of its business.  The operations of the Group are currently being financed from funds which the Company has raised from the issue of new shares.

As at 30 September 2017, the Group held cash balances of £4,093,000.  The Group's cash balances at 15 December 2017 were £3,793,000.

The Directors have prepared cash flow forecasts for the period ending 31 December 2018.  The forecasts include the costs of progressing the Lithium Projects and the corporate and operational overheads of the Group.  The forecasts demonstrate that the Group has sufficient cash resources available to allow it to continue as a going concern and meet its liabilities as they fall due for a period of at least twelve months from the date of approval of these interim financial statements without the need for a further fundraising.  Accordingly, the interim financial statements have been prepared on a going concern basis.

1.    SEGMENTAL REPORTING

The operations and assets of the Group are focused in the United Kingdom, West Africa and Norway and comprise one class of business: the exploration and evaluation of mineral resources. The parent Company acts as a holding company. At 30 September 2016, the Group had not commenced commercial production from its exploration sites and therefore had no revenue for the period.

Six months to 30 September 2017 (Unaudited)	West African Gold	West African Lithium	Norway		Corporate	Total
	£	£	£		£	£
Impairment	-	-		(8,442)	-	(8,442)
Administration expenses	(953)	(115)	(43)		(219,581)	(220,692)
Share based payments	-	-	-		(300,207)	(300,207)
Loss for the period	(953)	(115)	(8,485)		(519,788)	(529,341)
At 30 September 2017
Trade and other receivables	-	-	-		11,107	11,107
Cash and cash equivalents	11,962	64,705	29		4,016,311	4,093,007
Trade and other payables	-	(193,426)	-		(33,505)	(226,931)
Intangible assets - exploration and evaluation expenditure	833,524	1,586,472	-		-	2,419,996
Property plant and equipment	-	3,548	-		-	3,548
Net assets	845,486	1,461,299	29		3,993,913	6,300,727

Six months to 30 September 2016 (Unaudited)	West African Gold	West African Lithium	Norway	Corporate	Total
	£	£	£	£	£
Impairment	-	-	(3,631)	-	(3,631)
Administration expenses	-	-	(331)	(192,662)	(192,993)
Share based payments	-	-	-	(9,778)	(9,778)
Loss for the period	-	-	(3,962)	(202,440)	(206,402)
At 30 September 2016
Trade and other receivables	-	-	-	7,570	7,570
Cash and cash equivalents	3,151	-	1,346	310,843	315,340
Trade and other payables	(26,671)	-	-	(120,768)	(147,439)
Intangible assets - software	-	-	1,530	-	1,530
Intangible assets - acquisition of IG Bermuda	530,134	-	-	-	530,134
Intangible assets - other exploration and evaluation expenditure	133,879	35,696	621,579		791,154
Property plant and equipment	-	-	51,936	-	51,936
Net assets	640,493	35,696	676,391	197,645	1,550,225

Year to 31 March 2017 (Audited)	West African Gold	West African Lithium	Norway	Corporate	Total
	£	£	£	£	£
Finance income
Administration expenses	(160)	(160)	(45,021)	(443,035)	(488,376)
Impairment charge	-	-	(675,236)	-	(675,236)
Share based payments	-	-	-	(14,667)	(14,667)
Loss for the year	(160)	(160)	(720,257)	(457,702)	(1,178,279)
At 31 March 2017
Other receivables	-	1,040	2,000	13,189	16,229
Cash and cash equivalents	11,423	11,423	7,088	1,693,016	1,722,950
Trade and other payables	-	(155,076)	-	(170,137)	(325,213)
Intangible assets - exploration and evaluation expenditure	714,085	609,141	-	-	1,323,226
Net assets	725,508	466,528	9,088	1,536,068	2,737,192

2.   OPERATING LOSS

The operating loss before tax is stated after charging:

		Unaudited 6 months to 30 September 2017		Unaudited 6 months to 30 September 2016		Audited Year ended 31 March 2017
		£		£		£
Impairment charge (see note 3)		8,442		3,631		675,236
Audit services		-		7,500		37,500
Share based payment -     Directors -     Others		221,462 78,745		6,111 3,667		9,167 5,500
Directors' cash based fees		52,852		49,571		99,126

3.   LOSS PER SHARE

Basic loss per share is calculated by dividing the loss for the period attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the period.

The following reflects the loss and share data used in the basic EPS computations:

		Loss	Weighted average number of shares		Basic loss per share (pence)
		£
Six months to 30 September 2017		(529,341)	6,121,284,447		(0.0087)
Six months to 30 September 2016		(206,402)	3,041,201,003		(0.0068)
Year ended 31 March 2017		(1,178,279)	3,942,928,822		(0.0299)

Diluted loss per Share is calculated by dividing the loss attributable to ordinary equity holders of the parent by the weighted average number of ordinary Shares outstanding during the period plus the weighted average number of ordinary Shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary Shares.  Options in issue are not considered diluting to the earnings per Share as the Group is currently loss making.   Diluted loss per Share is therefore the same as the basic loss per Share.

4.    SHARE BASED PAYMENTS

The share-based payment reserve is used to recognise the value of equity-settled share-based payments provided to employees, including key management personnel, as part of their remuneration.

		Unaudited 6 months to 30 September 2017		Unaudited 6 months to 30 September 2016		Audited Year ended 31 March 2017
Share options outstanding
Opening balance		40,000,000		40,000,000		40,000,000
Issued in the period		145,000,000		-		-
Closing balance		185,000,000		40,000,000		40,000,000

		Unaudited 6 months to 30 September 2017		Unaudited 6 months to 30 September 2016		Audited Year ended 31 March 2017
Share warrants outstanding
Opening balance		-		-		-
Issued in the period		25,000,000		-		-
Closing balance		25,000,000		40,000,000		40,000,000

A share based payment charge of £300,207 for the period to 30 September 2017 (6 months to 30 September 2016: £9,778, year to 31 March 2017: £14,667) has been recognised in the profit and loss in relation to these options and warrants.

The options and warrants have been valued on the basis of a Black Scholes valuation model using the following key parameters:

	Options	Warrants
Issue date	8 May 2017	18 May 2017
Expiration date	May 2022 - May 2024	May 2022 - May 2024
Strike price	0.38 pence	0.38 pence
Share price on issue date	0.31 pence	0.32 pence
Volatility	143%	143%

5.    TAXATION

There is no taxation charge for the period to 30 September 2017 (6 months to 30 September 2016: £nil, year to 31 March 2017: £nil) as the group continues to incur losses.

No deferred tax asset has been recognised in respect of losses as the timing of their utilisation is uncertain at this stage.

6.    INTANGIBLE ASSETS

			Exploration and evaluation		Software		Total
			£		£		£
COST
At 31 March 2016			4,058,645		27,295		4,085,940
Additions in the period - acquisition of IG Bermuda			530,134		-		530,134
Additions in the period - other expenditure			194,036		-		194,036
Effects of foreign exchange			4,194		-		4,194
At 30 September 2016			4,787,009		27,295		4,814,304
Additions in the period			667,986		-		667,986
Disposals in the period			-		(27,295)		(27,295)
Effects of foreign exchange			5,557		-		5,557
At 31 March 2017			5,460,552		-		5,460,552
Additions in the period			1,083,164		-		1,083,164
Effects of foreign exchange			22,048		-		22,048
At 30 September 2017			6,565,764		-		6, 565,764
AMORTISATION
At 31 March 2016			3,462,090		22,459		3,484,549
Amortisation charge for the period			-		3,306		3,306
Impairment charge			3,631		-		3,631
At 30 September 2016			3,465,721		25,765		3,491,486
Amortisation charge for the period			-		(25,765)		(25,765)
Impairment charge			671,605		-		671,605
At 31 March 2017			4,137,326		-		4,137,326
Impairment charge			8,442		-		8,442
At 30 September 2017			4,145,768		-		4,145,768
NET BOOK VALUES
At 30 September 2017 (Unaudited)			2,419,996		-		2,419,996
At 30 September 2016 (Unaudited)			1,321,288		1,530		1,322,818
At 31 March 2017 (Audited)			1,323,226		-		1,323,226

7.    PROPERTY, PLANT AND EQUIPMENT

		Fixtures, fittings and equipment		Plant and machinery		Motor vehicles		Total
		£		£		£		£
COST
At 31 March 2016		96,597		30,758		19,851		147,206
Effects of foreign exchange		1,050		248		677		1,975
At 30 September 2016		97,647		31,006		20,528		149,181
Disposals in the period		(97,647)		(31,006)		(20,528)		(149,181)
At 31 March 2017		-		-		-		-
Additions in the period		-		3,702		-		3,702
At 30 September 2017		-		3,702		-		3,702
DEPRECIATION
At 31 March 2016		53,832		18,964		10,829		83,625
Charge for the period		8,704		2,248		2,668		13,620
At 30 September 2016		62,536		21,212		13,497		97,245
Disposals in the period		(62,536)		(21,212)		(13,497)		(97,245
At 31 March 2017		-		-		-		-
Charge in the period		-		154		-		154
At 30 September 2017		-		154		-		154
NET BOOK VALUES
At 30 September 2017 (Unaudited)		-		3,548		-		3,548
At 30 September 2016 (Unaudited)		35,111		9,794		7,031		51,936
At 31 March 2017 (Audited)		-		-		-		-

8.    SUBSIDIARY ENTITIES

The consolidated financial statements include the following subsidiary companies:

Company	Subsidiary of	Country of incorporation	Equity holding	Nature of Business
Kodal Norway (UK) Limited	Kodal Minerals Plc	United Kingdom	100%	Operating company
Kodal Mining AS	Kodal Norway (UK) Limited	Norway	100%	Mining exploration
Kodal Phosphate AS	Kodal Norway (UK) Limited	Norway	100%	Mining exploration
International Goldfields (Bermuda) Limited	Kodal Minerals Plc	Bermuda	100%	Holding company
International Goldfields Mali SARL	International Goldfields (Bermuda) Limited	Mali	100%	Mining exploration
International Goldfields Cȏte d'Ivoire SARL	International Goldfields (Bermuda) Limited	Cȏte d'Ivoire	100%	Mining exploration
Jigsaw Resources CIV Limited	International Goldfields (Bermuda) Limited	Bermuda	100%	Mining exploration
Corvette CIV SARL	International Goldfields (Bermuda) Limited	Cȏte d'Ivoire	100%	Mining exploration
Future Minerals Limited	International Goldfields (Bermuda) Limited	Bermuda	100%	Mining exploration

9.    ORDINARY SHARES

Allotted, issued and fully paid:

	Nominal Value	Number of Ordinary Shares	Share Capital £	Share Premium £
At 31 March 2016		1,049,854,849	328,080	4,937,405
May 2016 - note (a)	£0.0003125	1,025,000,000	320,313	89,687
May 2016 - note (b)	£0.0003125	1,700,000,000	531,250	108,900
At 30 September 2016		3,774,854,849	1,179,643	5,135,992
October 2016 - note (c)	£0.0003125	771,400,000	241,063	486,237
January 2017 - note (d)	£0.0003125	673,333,334	210,417	739,536
March 2017 - note (e)	£0.0003125	166,666,667	52,083	422,917
At 31 March 2017		5,386,254,850	1,683,206	6,784,682
May 2017 - note (f)	£0.0003125	868,421,052	271,382	3,028,618
July 2017 - note (g)	£0.0003125	182,709,973	57,096	420,938
At 30 September 2017		6,437,385,875	2,011,684	10,234,238

Share issue costs have been allocated against the Share Premium account.

Notes:

a)    On 20 May 2016, a total of 1,025,000,000 shares were issued at a price of 0.04 pence per share in connection with the acquisition of IG Bermuda. 

b)    On 20 May 2016, a total of 1,700,000,000 shares were issued at 0.04 pence per share in a placing. The associated share issue costs have been allocated against the Share Premium reserve.

c)    On 3 October 2016, a total of 720,000,000 shares were issued in a placing and a total of 51,400,000 shares were issued to suppliers of the Company in part settlement of the services provided, in each case at an issue price of 0.1 pence per share.

d)    On 13 January 2017, a total of 666,666,667 shares were issued in a placing and a total of 6,666,667 shares were issued to a supplier of the Company in part settlement of the services provided, in each case at an issue price of 0.15 pence per share.

e)    On 10 March 2017, a total of 166,666,667 shares were issued in a subscription at an issue price of 0.3 pence per share.

f)   On 8 May 2017, a total of 868,421,052 shares were issued in a subscription at an issue price of 0.38 pence per share.

g)    On 31 July 2017, a total of 182,709,973 shares were issued in a subscription at an issue price of 0.38 pence per share.

10.  RELATED PARTY TRANSACTIONS

Transactions with related parties

Robert Wooldridge, a Director, is a member of SP Angel Corporate Finance LLP ("SP Angel") which acts as Financial Adviser and Broker to the Company. During the six months ended 30 September 2017, the Company has paid fees to SP Angel of £15,809 (6 months to 30 September 2016: £54,950, year to 31 March 2017: £148,891) for its services as broker.

Novoco Mine Engineering Limited ("Novoco"), a company wholly owned by Luke Bryan, a Director, provided consultancy services to the Group during the six months to 30 September 2016 and received fees of £13,400 (6 months to 30 September 2016: £21,000, year to 31 March 2017: £24,300).

Matlock Geological Services Pty Ltd ("Matlock"), a company wholly owned by Bernard Aylward, a Director, provided consultancy services to the Group during the six months to 30 September 2016 and received fees of £47,376 (6 months to 30 September 2016: £31,644, year to 31 March 2017: £91,106).

11.  CONTROL

No one party is identified as controlling the Group.

12.  EVENTS AFTER THE REPORTING PERIOD

Completion of investment by Suay Chin International Pte and appointment of director

In November 2017, the Company announced that the final subscription instalment of £330,968 had been received from Suay Chin International Pte in respect of which the Company issued 87,096,953 new ordinary shares at 0.38p per share. 

Following completion of this subscription, Dr Qingtao Zeng was appointed as a representative of Suay Chin International Pte to the Kodal Board as a non-executive Director and the Company awarded options over 10,000,000 ordinary shares to Dr Zeng. The options have a strike price of 0.38p per share and a life of 5 years from become exercisable. 50 per cent. of the options are exercisable immediately, with a further 25 per cent. becoming exercisable after one year and the remaining 25 per cent. becoming exercisable in two years' time.In December 2017, Kodal announced it had identified an irregularity with the Kolossakoro concession that is part of the Bougouni Project.  Following subsequent discussions with the Directorate Nationale de la Géologie et des Mines ("DNGM", the Malian National directorate of Geology and Mines) the Company established that the licence may be considered to have expired as a result of EMAS not replying to correspondence sent to it by DNGM.

Furthermore, a local company, Triumvirat Mining Company SARL ("Triumvirat"), had made an application to DNGM for two new licences within the Kolassokoro licence area.  Kodal has reached an agreement with Triumvirat under which Triumvirat has withdrawn its applications and Kodal has filed new applications over two new 100 square kilometre licences covering the high priority areas within the former Kolassokoro area. If the applications are successful, Kodal will have a 90% interest in these new licences with Triumvirat having a 10% interest. Kodal will have therefore successfully maintained its 90% interest in this ground.

** ENDS**

Enquiries

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

Kodal Minerals plc Bernard Aylward, CEO	Tel: [phone]
Allenby Capital Limited, AIM Nominated Adviser Jeremy Porter/Nick Harriss	Tel: [phone]
SP Angel Corporate Finance LLP, Financial Adviser & Broker John Mackay	Tel: [phone]
St Brides Partners Ltd, Financial PR Susie Geliher/Lottie Wadham/Megan Dennison	Tel: [phone]

 

END

 

 

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