Information on Kodals largest share holder20 Jan 2023 12:35
Kodalβs new largest shareholder
In addition, Hainan will complete an equity subscription into Kodal for US$17.75mln at a price of 0.5p per share, a 108% premium on yesterdayβs closing share price.
Together with the KMUK funding, Hainan will become Kodalβs largest shareholder with a 14.8% stake.
The proceeds from the subscription will be used to advance Kodalβs portfolio of gold exploration assets in Mali and Ivory Coast and assess new exploration and development opportunities in West Africa, said Kodal.
Closing of the funding transactions is conditional on approval of certain authorities and regulators in China.
Shanghai-listed Hainan's core businesses are iron ore, through its Shilu iron ore mine, and oil and gas. The investment in Kodal is Hainan's first entry into the mining and processing of hard rock pegmatite-hosted mineralisation.
"This investment in Kodal and Kodal Mining UK Ltd is in line with Hainan Mining's strategy of improving the level of resource and feedstock security, and commencing the building of our lithium hydroxide supply chain,β said Liu Mingdong, chairman of Hainan Mining.
Fosun International Ltd is the controlling shareholder of Hainan with a 45.9% interest.
Kodalβs Aylward noted the positive outlook for lithium: βThe lithium sector remains very buoyant with high demand and market prices for spodumene concentrate. The demand is supported by the increasing take-up of electric vehicles ('EVs') and the demand for secure supply is very high.β
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