Shares of Kodal Minerals PLC (LON: KOD) barely moved today after announcing an updated grant of share rights and share options to some of its executives who chose to forego some of their salaries in light of the uncertain economic environment posed by the coronavirus.
The company, whose primary project is the Bouguoni lithium project in Mali, said it had decided to award the share rights and options to certain directors and senior executives as part of the payment for accrued but unpaid salaries and fees.
The move will see Kodal Minerals release its financial obligations to the executives to focus its financial resources on developing various projects led by the Bouguoni lithium project.
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On the bright side, Kodal announced earlier this month that it was in the last stages of receiving a mining license for its Bouguoni mine after its application was forwarded to the Secretary General’s office for final review.
Investors had a muted reaction to today’s announcements as they await the award of the mining license, which has been a significant hurdle for Kodal and will allow it to start producing lithium from the site and capitalise on the growing global demand for lithium.
The Bouguoni lithium project is regarded as one of the top natural lithium projects globally and could generate significant revenues for Kodal Minerals.
Kodal issued 175,000,000 new ordinary shares of 0.03125p, which make up to 1.1% of the company’s outstanding share capital. The shares were awarded to Bernard Aylward, the firm’s CEO and Mohamed Niare, the company’s Country Manager for Mali.
Investors are patiently waiting for Kodal Minerals to be awarded the mining license for its Bouguoni project, which could trigger a significant rally in its shares price.
*This is not investment advice.
Kodal Minerals share price.
Kodal Minerals shares barely moved following today’s shares and a rights grant announcement.