Kodal Minerals has secured sufficient funding resources to accelerate completion of the next phases of its development projects and to evaluate exciting new opportunities via a US$1.5 million unsecured convertible loan agreement with Riverfort Global Opportunities PCC and YA II PN.
As previously announced on 6 April 2020, the Company entered into a £500,000 Subscription Agreement and associated Equity Sharing Agreement (ESA) with the Investors under which it is receiving monthly payments based on the Company’s share price during that month.
To date, the facility has performed ahead of management expectations with over £194,000 received by the end of June 2020.
Payments to the Company under the ESA will continue on a monthly basis.
To further accelerate progress and deliver value to shareholders, the Company has entered into a new Loan Agreement which will provide the Company with US$750,000 immediately and the option to drawdown an additional US$750,000.
In conjunction with monthly ESA payments, this funding ensures that the Company has sufficient capital resources to progress development work on the Bougouni Project, satisfy the fee for the mining licence once formally awarded and also fund the exploration work at the Company’s gold projects.
In addition, this funding will enable the Company to look at new opportunities in the gold space. Kodal Minerals provided an update on the Company’s Mining Licence application and gold exploration programme on 28 May 2020 and the position remains the same.