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
13 December 2017
Kodal Minerals plc
('Kodal Minerals' or the 'Company')
New licence application over Kolassokoro licence area
Kodal Minerals, the AIM quoted mineral exploration and development company, provides an update on the status of its interests in the Kolassokoro licence area, which is part of the Bougouni Lithium Project in Mali, and provides details of the action it has taken to seek to protect its ownership of relevant interests in this licence area.
The Company owned its interest in the Kolassokoro licence area by way of an agreement with the registered licence holder EMAS Mining SA ("EMAS") as announced on 6 September 2016 (the "EMAS Agreement"), that gave the Company exclusive rights to explore and develop for minerals within the 250 square kilometre licence area, with an option to acquire up to a 90% interest in the licence. The Company had recently accelerated payments under the EMAS Agreement so as to acquire the maximum 90% interest and, following the licence renewal granted on 19 September 2017, was in the process of transferring the licence into the name of Future Minerals SARL ("Future Minerals"), its 100% owned Malian subsidiary.
Whilst seeking to progress the licence transfer, the Company became aware of an irregularity in the Kolassokoro licence. Following subsequent discussions with the Directorate Nationale de la Géologie et des Mines ("DNGM", the Malian National directorate of Geology and Mines) the Company established that the licence may be considered to have expired as a result of EMAS not replying to correspondence sent to it by DNGM.
Furthermore, a local company, Triumvirat Mining Company SARL ("Triumvirat"), had made an application to DNGM for two new licences within the Kolassokoro licence area. Kodal has reached an agreement with Triumvirat under which Triumvirat has withdrawn its applications and Kodal has filed new applications over two new 100 square kilometre licences covering the high priority areas within the former Kolassokoro area. If the applications are successful, Kodal will have a 90% interest in these new licences with Triumvirat having a 10% interest. Kodal will have therefore successfully maintained its 90% interest in this ground.
The new licences, when granted, will have an initial life of three years and be eligible for two extensions each of a further two years.
Under the terms of agreement reached with Triumvirat:
· Triumvirat has assisted Kodal in securing applications for the two new exploration licences, each covering 100 square kilometres, within the former Kolassokoro licence area, to be issued in the name of Future Minerals (a 100% owned subsidiary of Kodal Minerals);
· Kodal has granted, conditional on the applications being successful, a 10% economic interest in each licence to Triumvirat which will be free carried through to feasibility study;
· On award of the licences, Kodal will pay Triumvirat a fee of FCFA 40 million (approximately £53,000).
The Company is seeking to establish with the DNGM and EMAS the status of the licences granted to EMAS in the Kolassokoro area that were the subject of the EMAS Agreement. Kodal Minerals is also seeking to determine, given the recent developments, the status of the EMAS Agreement and any future obligations Kodal Minerals and/or EMAS have under it. Further updates in this regard will be provided as soon as possible.
Kodal is maintaining its exploration and definition programme at the Bougouni Project and is confident of its rights to the project area.
Kodal will provide further updates on the progress of the new licence applications and any clarifications on the status of the original licence in due course.
**ENDS**
For further information, please visit www.kodalminerals.com or contact the following:
Kodal Minerals plc Bernard Aylward, CEO |
Tel: +61 418 943 345 |
Allenby Capital Limited, AIM Nominated Adviser Jeremy Porter/Nick Harriss |
Tel: 020 3328 5656 |
SP Angel Corporate Finance LLP, Financial Adviser & Broker John Mackay |
Tel: 020 3470 0470 |
St Brides Partners Ltd, Financial PR Susie Geliher/Lottie Wadham/Megan Dennison |
Tel: 020 7236 1177 |
