Shares of Kodal Minerals PLC (LON: KOD) plunged 11.1% after the company revealed that it had received conversion notices related to its $1.5 million unsecured convertible loan agreement with Riverfort Global Opportunities PCC Limited and YA II PN Ltd.
The mineral exploration and development company has announced the convertible loan agreement on July 15, 2020, where investors elected to convert a total of $300,242.88 into 347,078,879 new ordinary shares of 0.03125p each in the company, priced at 0.06340p per ordinary share.
Today’s conversion notice represents the final payment of $750,000, which was the first tranche of the loan agreement. The company still has an outstanding payment of $750,000 for the second tranche of the loan, announced on October 27, 2020.
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The latest conversion will allow the company to continue developing its flagship Bougouni lithium project in Mali and the rest of its gold projects in Mali and Ivory Coast.
Kodal Minerals recently expanded its presence in Mali having acquired the Fatou Gold Project in southern Mali in mid-December covering an area exceeding 300 square kilometres via an agreement with local miners.
The company plans to start exploring for gold at Fatou as soon as possible given that the mine has a historical compliant NI 43-101 resource of over 350,000 ounces.
Kodal Minerals share price.
Kodal Minerals shares fell 11.1% to trade at 0.100p having dropped from Monday’s closing price of 0.1125p.