RE: Bougouni west concessions4 Nov 2021 07:44
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
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