Kodal Minerals Regulatory News (KOD)

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"). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

Kodal Minerals Plc / Index: AIM / Epic: KOD / Sector: Mining

11 March 2019

Kodal Minerals plc ("Kodal Minerals" or the "Company")

Fundraise to Fast track Development and Exploration Activities at Bougouni Lithium Project

Kodal Minerals, the mineral exploration and development company focused on the Bougouni Lithium Project in Southern Mali ("Bougouni"), is pleased to announce that it has raised £700,000 (before expenses) via a placing of 500,000,000 new ordinary shares of 0.03125p each in the capital of the Company ("New Ordinary Shares") at a placing price of 0.14 pence per New Ordinary Share (the "Placing Price") (together the "Placing"). The funds raised will primarily support Kodal Minerals in its aim of rapidly advancing Bougouni, as it continues to fast track development.

The Company will use the net proceeds of the Placing to:

· Continue to fast track both its project development programme and its exploration drilling programme;

· Continue on-going project development programme:

o Completion of the Environmental and Social Impact Assessment, anticipated to be lodged by the end of Q2 2019;

o Further metallurgical test work with an update expected by the end of Q2 2019;

o Continuation of the engineering review and design working with highly experienced consulting groups;

o Building towards completing a mining licence application by the end of Q3 2019.

· Exploration programme:

o Definition and extension drilling planned for Sogola-Baoule and Boumou with focus on extending Mineral Resource;

o Exploration drilling of priority targets defined by previous drilling and identification of new pegmatite veins;

o Initial drill testing of the recently acquired Bougouni West project where initial geological reconnaissance is highlighting prospective targets.

Bernard Aylward, CEO of Kodal Minerals, said: "As demonstrated by the support we have seen for the fundraise, Kodal is an attractive value proposition, offering significant potential uplift through the development of Bougouni and the dedication of our team to expedite this process.

"Raising these funds will enable us to continue with the successful development and exploration programmes that are currently underway. We recently announced an upgrade of the JORC Mineral Resource estimate to 21.3Mt at 1.1%Li2O in addition to ongoing development planning for an expected 1.5Mt per annum processing plant with open pit mining from the initial three prospects at Ngoualana, Sogola-Baoule and Boumou. The Company is focused on moving Bougouni to development as rapidly as possible, however we are also looking to build a long-term operation at Bougouni and, with this in mind, our exploration programme is continuing to define high priority targets that require drill testing. The results of the exploration will feed back into the development process and future development planning."

Details of the Placing

The Placing will result in the issue of 500,000,000 New Ordinary Shares, representing approximately 6.1 per cent. of the Company's issued ordinary share capital as enlarged by the Placing.

Application will be made for the New Ordinary Shares to be admitted to trading on AIM and it is expected that their admission to AIM will take place on or around 14 March 2019 ("Admission"). The issue of the New Ordinary Shares is conditional upon, inter alia, Admission occurring. 

The New Ordinary Shares, when issued and fully paid, will rank pari passu in all respects with the Company's existing Ordinary Shares, including the right to all dividends or other distributions declared, made or paid after the date of issue of the New Ordinary Shares.

The New Ordinary Shares will be issued utilising the Company's existing share authorities to issue new shares on a non-pre-emptive basis.

AIM Rule 17

In accordance with AIM Rule 17, the Company announces that the beneficial interest of Suay Chin International Pte Ltd in the Company remains unchanged at 2,227,971,568 Ordinary Shares but upon Admission will represent 27.13 per cent. of the Company's then issued share capital.

Total Voting Rights

Upon Admission, the issued share capital of the Company will consist of 8,212,539,503 Ordinary Shares. The Company holds no shares in treasury. The total number of voting rights in the Company from Admission will therefore be 8,212,539,503. 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 Company under the Disclosure Guidance and Transparency Rules of the UK Financial Conduct Authority.

**ENDS**

For further information, please visit www.kodalminerals.com or contact the following:

About Kodal Minerals

Kodal Minerals' primary focus is on the rapid advancement towards production of its flagship Bougouni Lithium Project in Southern Mali. The JORC Resource Estimate places the Bougouni Project in the top 15 hard rock lithium projects globally and was calculated using only three of the eight currently recognised prospects demonstrating the significant exploration upside potential remaining across the 450km2 project area. The Mineral Resource estimate for the Ngoualana, Sogola-Baoule and Boumou prospects are tabulated below. These mineral resources are reported in accordance with the JORC Code:

Notes: Mineral resources are reported using a 0.5%Li2O cut-off. Figures may not sum due to rounding. The contained metal is determined by the estimated tonnage and grade.

The Bougouni Project and recently acquired 200km2 Bougouni West project are located in an emerging lithium province that is already attracting the attention of investors and off-take partners interested in securing a long-term supply of lithium. With the support of its strategic investor and off-take partner Suay Chin International Pte, a Singapore-based lithium and chemical trader, Kodal Minerals is well funded to continue its ambitious development programme at Bougouni.

Further to this, Kodal Minerals is the manager of additional lithium and gold projects that are undergoing low cost exploration programmes in addition to JV funded gold properties in Cote d'Ivoire that offer potentially significant long-term value.

Information to Distributors

Solely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended ("MiFID II"); (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II; and (c) local implementing measures (together, the "Product Governance Requirements"), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any "manufacturer" (for the purposes of the Product Governance Requirements) may otherwise have with respect thereto, the Placing Shares have been subject to a product approval process, which has determined that the Placing Shares are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in MiFID II; and (ii) eligible for distribution through all distribution channels as are permitted by MiFID II (the "Target Market Assessment"). Notwithstanding the Target Market Assessment, investors should note that: the price of the Placing Shares may decline and investors could lose all or part of their investment; Placing Shares offer no guaranteed income and no capital protection; and an investment in Placing Shares is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Placing. Furthermore, it is noted that, notwithstanding the Target Market Assessment, only investors who have met the criteria of professional clients and eligible counterparties have been procured. For the avoidance of doubt, the Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to Placing Shares.