Mineral exploration and development company Kodal Minerals says it has refused a request from Resolute Mining for an additional extension of the terms of a joint venture (JV) agreement between the two companies, claiming that Resolute’s expenditure in the JV of about $2-million falls short of its commitment under the agreement.
Kodal will now retain 100% ownership of the concessions when the JV expires on February 25, it adds.
The JV covers three concessions – Nielle, Tiebissou and M’Bahiakro (application) – and Kodal will continue exploration on all concessions.
Exploration drilling of over 7 400 m by Resolute has defined a gold anomaly at the Nielle project extending for over 1 000 m and open along strike and at depth which will be the priority for future Kodal drilling in Côte d’Ivoire.
Kodal has received all data for the Nielle project, including previously reported drill results.
FUNDING AGREEMENT
Kodal has also provided an update on the term sheet signed for a proposed funding agreement with Aim-listed Riverfort Global Opportunities and Riverfort Global Opportunities PCC to provide up to $2.5-million to be used to advance exploration at the company’s gold assets.
Kodal has been informed that the investors have satisfactorily completed their due diligence in connection with the funding agreement and have confirmed their intention to continue with the funding arrangement subject to agreement on final terms.
Kodal and the investors are continuing negotiations over the final structure and terms of the funding agreement.