Mineral exploration and development company Kodal Minerals has acquired an interest in the Fatou gold project, in southern Mali, from local vendors.

The project, which has a historic mineral resource of more than 350 000 oz of gold, comprises the Fininko (also known as Fatou) and Foutière concessions and is complementary to Kodal's existing activities in southern Mali.

Kodal has, through its IGS-Mali subsidiary, acquire a 90% interest in the Fininko concession from Sacko Holdings and an 80% interest in the Foutière concession from Falcon Gold.

IGS-Mali will pay up to $2.05-million for the interest in the Fininko concession over a two-year period.

Sacko will be entitled to a 2% net smelter return (NSR) royalty over the concession.

Further, IGS-Mali will pay up to $200 000 over a three-year period to acquire the interest in the Foutière concession, while Falcon will be entitled to a 1.5% NSR royalty.

"I am very pleased to announce the acquisition of the Fatou project; this is an exciting opportunity for Kodal to acquire an advanced gold project that has immediate drill targets for testing and that complements our existing gold project portfolio in southern Mali and northern Côte d'Ivoire. 

"The project provides an opportunity for the company to confirm and expand a mineral resource through an expanded and targeted exploration programme. This acquisition is part of Kodal's strategy to demonstrate the value of our gold assets in West Africa while simultaneously establishing our first mining operation at our Bougouni lithium project in southern Mali," Kodal CEO Bernard Aylward comments.

Meanwhile, Kodal has also received a subsidiary-level project funding proposal from Aim-listed Riverfort Global Opportunities and Riverfort Global Opportunities to provide up to $2.5-million to fund part of the acquisition of the Fatou project, to implement a major exploration campaign at Fatou and to fund exploration at the company's other gold projects in Mali and Côte d'Ivoire. 

A term sheet has been signed for the proposed funding which remains subject to due diligence and a final contract being executed. 

Funding will be provided to Kodal quarterly in advance to support an exploration budget for its gold assets, with the intention to realise value for some or all the gold assets on or before October 31, at which time the investors will become entitled to a 40% interest in the gold assets.

Kodal's gold assets include the Nangalasso, the SLAM and the Fatou project, in Mali, and the Dabakala, Korhogo, Boundiali, Nielle, Tiebissou and M'Bahiakro concessions in Côte d'Ivoire. 

"The funding from the investors will allow Kodal to explore rapidly our gold projects with a clear aim of defining mineral resources and demonstrating expansion and mining potential. 

"Once concluded, this funding is extremely positive for our shareholders, as it enables us to fund the acquisition of a new advanced gold project and also to explore and aggressively drill our gold projects whilst incurring low or no dilution to existing shareholders. The creation of a joint venture following the spend of the funding will allow Kodal to explore opportunities to achieve value for the gold assets in the future." Aylward states.