By Michael Susin
Kodal Minerals PLC shares rose on Thursday after the company said it has agreed a $117.75 million conditional funding package for the Bougouni lithium project in Mali, and that it will dispose one of its projects.
Shares at 0953 GMT were up 0.08 pence, or 31.8%, at 0.32 pence.
The London-listed miner said the funding is for the development and start of production at the Mali project and its subsidiary Kodal Mining UK Limited received $100 million to be invested into the constructions.
The company said $17.75 million will be received trough a subscription by Hainan Group for ordinary shares in Kodal at a price of 0.5 pence a share. This represents a premium of 100% compared with Wednesday’s closing price of 0.25 pence.
“This investment provides us with a great opportunity to fast track to production of spodumene concentrate in a very strong market,” Chief Executive Bernard Aylward said. “The level of funding will allow us to fully fund the dense media separation plant with mining planned to commence at the high grade Ngoualana deposit as well as to support major drilling and exploration campaigns to discover and define additional lithium mineralization to seek to increase the life of the mining operation at Bougouni.”
The company added that it has entered into a non-binding term sheet for the sale of its Bougouni West project for a consideration of 2 million pounds ($2.5 million) in cash. Bougouni West project isn’t related to the Bougouni lithium project.
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