Aim-listed Kodal Minerals has raised £3-million in a new ordinary share placing of more than one-billion new ordinary shares.
The subscription was originally aimed at placing 130-million new ordinary shares, but was oversubscribed by 941-million shares, resulting in 1.07-billion shares being placed, at a price of 0.28p apiece.
The funds raised will support Kodal in its endeavour to develop, finance and construct the Bougouni lithium project, in Mali, particularly to complete the engineering programme and environmental, social and community engagement programmes.
The company will soon undertake infill and extension drilling of the defined resource areas to prepare a mineral resource review and potential upgrade of the current resource base.
Additionally, Kodal plans on drilling on the extensive landholding around the project, which has potential to add to the existing resource base.
“This oversubscribed placing demonstrates the ongoing support of our Bougouni project and the opportunity to move into the development and construction phase.
“Our major shareholder Suay Chin International has participated in the subscription along with members of the board and company executives,” notes CEO Bernard Aylward.
The Bougouni project is fully permitted for development and Kodal is working to start production as soon as possible, to take advantage of a lithium supply deficit and current spodumene concentrate price of over $3 000/t.