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(Alliance News) - Kodal Minerals PLC has raised over GBP500,000 to go towards work at its flagship Bougouni lithium project, located in southern Mali.
Kodal placed 718.8 million shares at a price of 0.080 pence each, raising GBP575,000. Kodal was 11% lower on Monday morning in London at 0.089p, giving it a market capitalisation of GBP7.3 million.
The cash, Kodal said, will be used to complete environmental & mining licence applications for Bougouni as well as for continued exploration and expansion work.
Kodal hopes to finish the environmental & social impact assessment by mid-August, and also despatch a bulk sample of 900 tonnes of pegmatite rock to China for processing test work.
Other work includes metallurgical test work and completing open-pit mining and plant infrastructure design, finalising a mining licence application, and restarting drilling in October.
Chief Executive Bernard Aylward said: "This fundraising will allow Kodal to continue this successful development and exploration programme and allow us to plan with certainty and ensure that there is no slowing of our progress.
"The placing has been supported by our major shareholder, Suay Chin International Pte, as well as existing shareholders and new investors and is also supported by myself, our chair, as well as other members of the board and senior management of Kodal."
Suay Chin is taking 62.5 million of the shares, meaning it will have a stake of just under 26% of Kodal.