(Alliance News) - Kodal Minerals PLC on Monday said it is has rejected Resolute Mining Ltd's request to extend the joint venture in Cote d'Ivoire as Resolute's expenditure of around USD2 million falls short of its commitment under the agreement.
The Resolute JV covers three concessions - Nielle, Tiebissou and M'Bahiakro.
The Mali-focused mineral exploration & development company stated that as a result of its refusal to extend, it will now retain 100% of the concessions when the JV expires on February 25.
Kodal noted exploration drilling of over 7,400 metres has defined a gold anomaly at the Nielle project extending for over 1,000 metres. It added it has also received all data for the Nielle project, which includes previously reported drill results with intersections including 26 metres at 1.95 grams per tonne gold, 16 metres at 1.96 grams, and 10 metres at 3.62 grams.
Separately, the company said Riverfort Global Opportunities PLC has completed due diligence and both parties are are continuing negotiations over the final structure and terms of the USD2.5 million funding agreement, with the amount to be used to advance Kodal's gold assets in West Africa.
Shares in Kodal were trading 5.3% higher at 0.095 pence each on Monday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Kodal Minerals (KOD)
Riverfort (RGO)
Resolute Mining (RSG)