Shares of Kodal Minerals PLC (LON: KOD) surged 12.5% today after the company acquired the Fatou gold project in Mali, largely considered an advanced gold project, via agreements with local vendors.
The project consists of a contiguous landholding of over 300 square kilometres with a historical compliant NI 43-101 resource of over 350,000 ounces, which is likely to increase after a funded nine-month drilling project.
Kodal intends to start a gold exploration programme at Fatou soon and is looking to raise up to $2.5 million in funding from Riverfort, a financing specialist.
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The final terms of the financing deal are yet to be agreed, but Riverfort is expected to have the option of converting the funding into a 40% stake in a gold joint venture with Kodal, or into Kodal shares at a yet to be determined price.
Bernard Aylward, Kodal Minerals’, CEO, said: “This is an exciting opportunity for Kodal to acquire an advanced gold project that has immediate drill targets for testing and that complements our existing gold project portfolio in southern Mali and northern Côte d’Ivoire,” Adding:
“This acquisition is part of Kodal’s strategy to demonstrate the value of our gold assets in West Africa whilst simultaneously establishing our first mining operation at our Bougouni Lithium Project in southern Mali.”
Aylward clarified that the company’s top priority was still its Bougouni Lithium Project where it is still in talks with the government for a mining license whose approval is expected in the near term.
Kodal Minerals share price
Kodal Minerals shares surged 12.5% to trade at 0.090p having rallied from Wednesday’s closing price of 0.080p.