Last checked at 14 May 2015 07:00
14 May 2015
Kodal Minerals Plc
("Kodal Minerals" or the "Company")
Grimeli Project drilling results and placing of shares to raise £400,000
Kodal Minerals, the mineral development and exploration company owning extraction and exploration licences in Norway, is pleased to announce the first results of the current drilling programme at the Grimeli Project. The Grimeli Project is a copper ("Cu") and zinc ("Zn") project located in western Norway approximately 150km north of Bergen.
The Company also announces that it has raised £400,000 (before expenses) by way of a placing of 222,222,222 new ordinary shares of 0.03125 pence each of the Company (the "Placing Shares") at 0.18 pence per Placing Share.
Drilling Results
Highlights
· High grade copper and zinc occurrences confirmed at Grimeli
· Best copper grade 8.39%
· Best zinc grade 6.98%
· Sample assay results returning greater than 1% Cu or greater then 1% Zn :
o 0.97m @ 6.39% Cu and 0.82% Zn (including 0.53m @ 8.39% Cu), BH04
o 0.50m @ 4.29%Cu and 6.98%Zn, BH03
o 0.51m @ 4.92%Cu and 0.82%Zn, BH05
o 1.0m @ 0.26% Cu and 2.44% Zn, BH01
· Drilling results prove the presence of previously unmined mineralised bodies
· Results confirm ground geophysical methods are successful in identifying mineralisation
· The identified mineralised lens is not constrained down dip or along strike
Drill Hole Details including significant assay results*
Bore hole ID | Collar Coordinates | Hole depth | Azimuth | Dip | From | To | Interval | Cu | Zn | ||
X | Y | Z | metres | degrees | degrees | metres | metres | metres | % | % | |
BH01 | 290706.8 | 6818464.3 | 37.5 | 63 | 140.4 | -55.5 | 40 | 41 | 1 | 0.26 | 2.44 |
BH02 | 290727.9 | 6818486 | 36.538 | 65 | 155.4 | -55 | 45.34 | 46 | 0.66 | 0.17 | 0.61 |
BH03 | 290727.9 | 6818486 | 36.538 | 67.9 | 155.4 | -80 | 44.25 | 44.75 | 0.5 | 4.29 | 6.98 |
BH04 | 290859.8 | 6818544.4 | 44.27 | 63 | 190 | -54 | 67.31 | 68.28 | 0.97 | 6.39 | 0.82 |
BH05 | 290859.4 | 6818544.7 | 44.38 | 82.7 | 224.6 | -78 | 70.38 | 70.89 | 0.51 | 4.92 | 0.82 |
BH06 | 290861.9 | 6818546.7 | 44.53 | 92.47 | 89.5 | -70 | 70.45 | 71.53 | 1.08 | 0.21 | 0.15 |
\* True widths of the mineralised body are unknown at this time
The Company has received assay results from six holes (434.07 metres) drilled from positions that are adjacent to the access road to the site. These holes were targeting a weak geophysical anomaly identified by ground geophysics completed by the Geologic Survey of Norway ("NGU") in a period around 1978. Of the 6 holes, four intersected massive sulphides. These holes were completed while the historic access track to the high drill positions was being reinstated. A diagram showing the NGU results has been placed on the Company's website.
In total the NGU interpreted approximately 4,500 metres of conductors at Grimeli and classified them as "very weak", "weak", "strong" and "very strong", of which approximately 3,385 metres were in previously un-mined areas, and of this a total of 715 metres was classified as having a "strong" or "very strong" response. The current results have tested 200 metres of "weak" conductor. Now that the Company has access to the high plateau via the reinstated access track, testing of a number of "strong" conductors will be completed.
Luke Bryan, Chief Executive Officer of the company, commented:
"These drilling results, following on from underground channel sample results released previously, provide further confirmation that the Grimeli VMS system contains high grade copper. We are also pleased to note the presence of significant zinc grades, which we have not observed in this location previously.
These positive results are from a target that, despite being classified as "weak" by the NGU, was drilled because of its proximity to the old mined areas while the access road was being reinstated. We are now looking forward to testing the high priority targets higher up the mountain."
Placing of new shares
The Company has raised £400,000 (before expenses) from the issue of 222,222,222 Placing Shares at 0.18 pence per Placing Share. The Placing Shares have been placed with new investors and existing shareholders of the Company. The net proceeds from the placing will be used to continue exploration work at the Grimeli Project and for general corporate purposes.
Application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective on or around 19 May 2014. The Placing shares will represent approximately 22 per cent. of the Company's enlarged share capital immediately following Admission.
The Placing Shares will be issued credited as fully paid and will rank in full for dividends and other distributions declared, made or paid in respect of the Company's ordinary shares of 0.03125 pence each ("Ordinary Shares") after the date of Admission and will otherwise rank pari passu in all respects with the existing Ordinary Shares.
Total Voting Rights
As a result of the issue of the Placing Shares as described above, the issued share capital of the Company will consist of 1,000,416,828 Ordinary Shares each with voting rights.
The Company holds no shares in treasury. The total number of voting rights in the Company is therefore 1,000,416,828. This figure may be used by shareholders as the denominator for the calculations by which they determine if they are required to notify their interest in or a change to their interest in the share capital of the Company under the Disclosure and Transparency Rules of the UK Financial Conduct Authority.
Shareholdings in the Company
Following the issue of the Placing Shares, the holdings of the directors of Kodal and other shareholders holding in excess of 3 per cent. of the Company's enlarged share capital on Admission are, to the best of the knowledge of the board of Kodal, as follows:
Name of shareholder | Holding of ordinary shares | % of enlarged share capital on Admission |
David Jones (Chairman) | 7,808,000 | 0.8% |
Luke Bryan (CEO) | 48,500,000* | 4.8% |
Robert Wooldridge (Non-Executive Director) | 50,417,949 | 5.0% |
Tetra Minerals Oy ** | 250,000,000 | 25.0% |
John Mackay | 50,081,476 | 5.0% |
SP Angel Corporate Finance LLP | 34,950,857 | 3.5% |
Ismail Emin Eyi | 35,302,488 | 3.5% |
*Held by Novoco Mine Engineering Limited, a company wholly owned by Luke Bryan.
**Markus Ekberg, a non-executive director of the Company, is a 50% shareholder of Tetra Minerals Oy which holds 250,000,000 ordinary shares in the Company, representing 25.0% on Admission.
Further information
Assays were completed by SGS Laboratory Services in Ankara, Turkey using a four acid digest and atomic absorption spectroscopy with a quoted detection limit of 10ppm for Cu and Zn up to 50% and 5% respectively.
The drilling results contained in the announcement have been reviewed by Mr. Galen White - Principal Geologist, CSA Global (UK) Ltd. Mr White is a Fellow in good standing of the Australasian Institute of Mining and Metallurgy (FAusIMM) and a Fellow of the Geological Society of London (FGS) with sufficient experience to act as Competent Person under the JORC Code (2012). Mr White has reviewed the information contained herein, alongside drill logs, sampling information, core photography and SGS laboratory analysis data. Mr White consents to the disclosure of drilling results in the form and context in which they appear.
Contact details:
Kodal Minerals plcLuke Bryan, Chief Executive Officer Tel: 020 3470 0470
Allenby Capital Limited, Nominated Adviser Tel: 020 3328 5656
Jeremy Porter/Nick Harriss
SP Angel Corporate Finance LLP, Financial Adviser & Broker Tel: 020 3470 0470
John Mackay
Yellow Jersey PR Ltd, Financial PR Tel: 07799 003 220
Dominic Barretto/Kelsey Traynor