Investors of lithium and gold explorer and developer Kodal Minerals, including Riverfort Global Opportunities and YA II PN, have sold all the ordinary shares of 0.03125p each in the company issued to them under the terms of an equity sharing agreement (ESA).

This has concluded the ESA and resulted in Kodal receiving total cash proceeds of £654 000, reflecting a positive result for the company compared with the £500 000 subscription agreement entered into at the start of the ESA.

The company also notes that the ESA has been completed in under six months.

In terms of the ESA, the investors were issued with warrants to subscribe for 228.57-million new ordinary shares, exercisable for a period of three years from the date of the ESA at a price of 0.04375p apiece.

The investors have elected to exercise these warrants in full at an aggregate exercise price of £100 000.

Application will be made for these shares being issued on exercise to be admitted to trading on Aim and it is expected that admission will take place on or around September 10.

According to Kodal, for the avoidance of doubt, there are no further payments to be made or received or shares to be issued pursuant to the ESA.

Upon admission, the issued share capital of Kodal will consist of about 11.34-billion ordinary shares.

Meanwhile, Kodal notes the recent positive movement in its share price, which it believes is the result of the announcement of its signing of a memorandum of understanding (MoU) with Sinohydro on September 1.

In this regard, Kodal believes the MoU with Sinohydro in respect of its Bougouni lithium project is a positive development.

However, the company notes that, while legally binding on the parties during the exclusivity period in the first six months, there can be no guarantees as to its outcomes nor that it will ultimately lead to financing of the Bougouni project or an engineering, procurement and construction contract being entered into with Sinohydro or any other party.