The concessions that are subject to the Agreement are the Mafele Ouest and Nkemene Ouest concessions (the "Concessions"). The Mafele Ouest concession was granted under arrêté (ministerial order in Mali) on 31 December 2018 and the Nkemene Ouest was granted under arrêté on 28 December 2018. The arrêtés are valid for an initial three year term, renewable for two additional two year terms giving a potential seven year life. Under the terms of the Agreement, Bambara has agreed to grant Future Minerals exclusive access to the Concessions and rights to explore and mine the Concessions (which includes any subsequently granted mining permits or licences granted in respect of the Concession area). Under the terms of the Agreement, Kodal and/or Future Minerals will be required to make the following payments to Bambara in order to secure access to the concessions and to earn the 80% interest:
· upon signing the Agreement, £35,000 in cash and £65,000 in new ordinary shares in Kodal, issued at today's mid-market closing price;
· six months after the execution of the Agreement, £70,000 in cash and £65,000 in new ordinary shares in Kodal, issued at a price equivalent to the 10 day VWAP (volume weighted average price) of Kodal ordinary shares prior to the payment date;
· 12 months after the execution of the Agreement, £80,000 in cash and £65,000 in new ordinary shares in Kodal, issued at a price equivalent to the 10 day VWAP (volume weighted average price) of Kodal ordinary shares prior to the payment date.
Upon completion of the three payments set out above, Kodal, through its subsidiary Future Minerals, will be the beneficial owner of 80% of the economic interest in the Concessions.
These staged payments allow Kodal/Future Minerals to explore the Concessions and gain additional geological and technical knowledge as exploration advances before committing additional funds. The payment of each stage of fees is solely at the discretion of Future Minerals and Future Minerals retains the right to withdraw from the Agreement at any stage with no penalty payable.
All new ordinary shares issued under the Agreement are subject to a "lock-in" agreement whereby they cannot be sold or transferred for a period of 12 months from the date of the Agreement.
Under the Agreement, Future Minerals is responsible for all exploration costs up to and including the cost of producing a feasibility study and lodging a mining licence application, progression to which will be dependent on the success of early stage exploration work.
At the completion of a feasibility study and lodging of a mining licence application, Kodal has the right to purchase the remaining 20% of the Concessions for:
· a £500,000 cash payment; and
· the granting of a 2% net sale royalty to Bambara. The net sale royalty will be based on the sale price received by Future Minerals for lithium concentrate at the point of export and on the net smelter price of any ot
define new lithium mineralised zones. These new concessions are immediately adjacent to the Goulamina Project, owned by ASX listed explorer Birimian Limited, where a Mineral Resource of 103Mt at 1.34%Li2O has been defined. Kodal is focusing its initial review and targeting on interpreted extensions of the Goulamina structure and parallel positions in a similar geological setting.
"The Bougouni region of Mali has demonstrated the presence of high-grade lithium mineralisation hosted by pegmatite veins. Kodal is the largest holder of ground in this region and has already managed to secure ground with demonstrated lithium mineralisation at Bougouni. This acquisition has enhanced the possibility of further discovery and support for our proposed development of open pit mining and a spodumene concentrate processing plant centred on the region of Bougouni."
Further Information
Terms of the Agreement
Kodal, through its wholly owned subsidiary Future Minerals SARL ("Future Minerals"), has entered into the Agreement with Bambara covering the Mafele Ouest and Nkemene Ouest concessions. These concessions were presented to Kodal by Mohamed Niare who is engaged by Kodal as a consultant in Mali and acts as the Company's logistics and Country Manager and is a director of its Mali subsidiary. Mohamed Niare operates a consulting business in Mali and, with Kodal's consent, provides services to a number of additional clients in the Mali mining industry, and it is through cooperation with one of these additional clients that the concessions were presented to and acquired by Bambara. Mohamed Niare is the sole shareholder of Bambara. Kodal has reviewed the process of acquisition of the concessions by Bambara and believes that the concessions were not available for Kodal to acquire directly and that the Agreement with Bambara represents an excellent opportunity for the Company to gain exclusive access to and the option to acquire the concessions on favourable terms for the benefit of the Company and its shareholders.
Wed, 30th Jan 2019 07:00RNS Number : 5096OKodal Minerals PLC30 January 2019 The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR") Kodal Minerals Plc / Index: AIM / Epic: KOD / Sector: Mining 30 January 2019 Kodal Minerals plc ('Kodal Minerals' or the 'Company') Kodal Adds 200km2 of Lithium Exploration Concessions in the Bougouni Lithium Province, Southern Mali Kodal Minerals, the mineral exploration and development company focused on the Bougouni Lithium Project, is pleased to announce it has negotiated an agreement which gives the Company exclusive rights to explore and an option to acquire two new concessions totalling 200km2 (the "Agreement") within 25km of the advanced Bougouni Lithium Project in Southern Mali ("Bougouni"). The new licence areas are immediately adjacent to the Goulamina Lithium project owned by ASX listed Birimian Limited. The Agreement is with a local Malian company Bambara Resources SARL ("Bambara") and covers the newly granted concessions Mafele Ouest and Nkemene Ouest that form the "Bougouni West" project. Highlights· Addition of highly prospective landholding in the Bougouni-Sikasso Lithium region totalling 200km2 in the immediate vicinity of known mineralisation.· New project area close to existing Bougouni Project and will be explored utilising Kodal's existing proven geological team and infrastructure· The Agreement grants Kodal exclusive rights to explore the new concessions· Rapid exploration programme planned - to take advantage of low-cost entry to highly prospective ground· The Agreement grants Kodal the right to acquire 80% of the concessions via option payments totalling £185,000 in cash and £195,000 in Kodal shares over three stages· Kodal also has the option, exercisable at its sole discretion once application for a mining licence is made, to move to 100% ownership through an additional payment of £500,000 in cash and the granting of a 2% royalty to Bambara Bernard Aylward, CEO of Kodal Minerals, said: "While our primary focus continues to be the development of our Bougouni Lithium Project, this new option agreement is a fantastic opportunity for Kodal to expand in this highly prospective region. Kodal has negotiated attractive terms that allow us to explore and potentially discover new zones of lithium mineralisation that would complement our existing project and further enhance our long-term position in this region. "Kodal has undertaken initial ground reconnaissance during its due diligence review and has commenced the prioritisation of exploration targets for immediate follow-up. We intend to continue the previously successful exploration programme of surface geochemistry, ground magnetics and drilling to attempt to d
I find it astonishing that you can buy these cheaper than the level before the chart broke down given the news we’ve had this week. Should be double the current level on what we know already, higher when the payment for the 20% is made. Wider mkt much better. Am expecting this to rally hard next week.
They will be hoovered up. Any blocks will go to instis. There are pretty sticky hands that hold BCN, that won’t be selling these. I think if anything M&G et al are more likely to add to keep Li exposure up. Does the recent px action not tell you that?
The doom mongerers had their day in the sun with “shares flooding mkt” chat whilst the mkt was falling and all the gogo lithium stocks were cratering. The mkt is thin. Shares are not easy to come by. Do you think centerbridge are dumb? When those loose shares from flakey PI hands come on the mkt they will hoover them up. There will be more volume for a bit and they will be able to get greater exposure without screwing their market (at least for a short period of time). Ship these in while you have the chance.
Wider mkt has stabilised. This is currently relatively illiquid, until it gets wider recognition (which it has in germany recently with new press, hence leading to the recent rise) it will be very high beta.