Kodal Minerals Regulatory News (KOD)

Prior to publication, the information contained within this announcement was 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, this information is now considered to be in the public domain.

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

31 July 2017

Kodal Minerals plc

('Kodal Minerals' or 'the Company')

Update re Equity Subscription Agreement and total voting rights

Kodal Minerals, the mineral exploration and development company, provides an update to its announcements of 8 May 2017 and 1 June 2017 regarding an equity subscription in the Company of approximately £4.8 million by Singapore-based Suay Chin International Pte Ltd ("Suay Chin"). Following Suay Chin's initial investment of £500,000 in the Company for 166,666,667 ordinary shares ("Shares") at £0.003 per Share, Suay Chin and the Company entered into an agreement (the "Subscription Agreement") for Suay Chin to complete a further investment of up to £4.3 million in the Company by way of a further subscription for up to 1,138,227,978 Shares ("Subscription Shares") at £0.0038 per Share in two tranches (the "Further Subscription").

The first tranche of the Further Subscription for £3,300,000 was completed with the admission to trading on AIM of 868,421,052 Subscription Shares on 12 May 2017.

The second tranche of the Further Subscription is for £1,025,266, of which Kodal Minerals has received approximately £694,297 and therefore approximately £330,969 remains outstanding (the "Final Amount"). Suay Chin has advised the Company that it intends to honour its subscription in full and the Company acknowledges that Suay Chin has made, and is continuing to make, significant efforts to complete the Further Subscription and, therefore, the Company and Suay Chin have mutually agreed to extend the deadline for receipt of the Final Amount from 31 July 2017 until 31 January 2018.

Pursuant to the receipt of approximately £694,297, the Company has agreed to issue 182,709,973 Subscription Shares at £0.0038 per Share to Suay Chin, conditional on admission of the Subscription Shares to trading on AIM ("Admission"). Application will be made to the London Stock Exchange for Admission of these Subscription Shares and such Admission is expected to become effective on 4 August 2017.  

Upon Admission, Suay Chin will have invested a total of £4,494,298 in the Company and will hold a total of 1,217,797,692 Shares, representing approximately 18.92% of the Company's then issued share capital.

On completion of the Further Subscription, as previously announced, and once Kodal Minerals has commissioned and completed a scoping study at the Company's Bougouni Lithium Project in Southern Mali (the "Project"), the Company and Suay Chin will seek to negotiate an extended off-take agreement for between 80% and 100% of the spodumene product produced at the Project for a period of three years from the commencement of commercial production. 

Further update announcements will be made by the Company once the Further Subscription has completed.

Total Voting Rights

With effect from Admission, the Company's issued share capital will consist of 6,437,385,875 ordinary shares with one voting right per share. The Company does not hold any ordinary shares in treasury. Therefore, the total number of ordinary shares and voting rights in the Company will be 6,437,385,875. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the issued share capital of the Company.

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