Following the termination and extension request refusal of the Corvette joint venture with Resolute Mining, Aim-listed exploration and development company Kodal Minerals now retains a 100% interest in the Nielle, Tiebissou and M'Bahiakro (application) gold concessions.
As such, Kodal now has a portfolio of eight gold projects in West Africa − Nielle, Tiebissou, M'Bahiakro, Dabakala and Korhogo, in Cote d’Ivoire, and Fatou, Nangalasso and SLAM, in Mali.
Going forward, Kodal geologists are undertaking a field visit to the Nielle project to confirm historic drilling and geological settings and confirm planning for the new drilling campaign.
As such, the miner’s exploration priorities are to define drilling at the Fatou project, exploration drilling at the Nielle project and infill geochemical sampling to define zones for reconnaissance drilling at the Dabakala project.
Kodal is also undertaking a $2.5-million funding proposal with Riverfort Global Capital and its designees (together the investor) to fund the development of its gold assets, including the $300 000 already advanced with the additional funds to be drawn down in two equal tranches of $1.1-million.
Following negotiations between Kodal and the investor, the terms of the previous term sheet for the funding proposal have been revised and it is anticipated that the final binding agreement will be ready for execution shortly.
The focus of the funding remains the advancement of the exploration and resource definition activities at Kodal’s gold projects in Mali and Côte d’Ivoire.
The funding proposal is for a 24-month secured convertible loan note (CLN) with no repayments before 18 months, and a 10% yearly interest, rolled up and payable on maturity, and an implementation fee of 5% of each tranche advanced.
Each tranche of the CLN may be converted by the investor into new ordinary shares of Kodal.
Kodal CEO Bernard Aylward says that by progressing the funding proposal with the investor, the company is moving towards being fully funded to complete its focussed programme at its advanced Fatou and Nielle projects, including an exploration drilling campaign designed to delineate mineral resources.
“We are excited to commence these drilling campaigns, following which we plan to continue advancing the Dabakala project where our early-stage exploration continues to deliver excellent results.”
He adds that the funding proposal, once executed, will provide Kodal with an opportunity to demonstrate the high quality of the assets through exploration and definition drilling campaigns.
“The increasing interest in West African gold projects and the already strong market interest in well advanced projects highlight the potential of our gold portfolio, for which we anticipate the ability to achieve a significant valuation in a potential future monetising event.”
Further, he says Kodal plans to complete a significant amount of field exploration in the current dry season while it awaits the granting of the mining licence application for its flagship asset – the Bougouni lithium project.
“Kodal maintains regular communications with the Mali transition government and we look forward to working with the government on the development of a new lithium mine in Mali in due course.”