Following negotiations between Kodal and Riverfort, the terms of a previously announced funding proposal have been revised and it is anticipated that the final binding agreement will be ready for execution shortly, Kodal said.
The funding will be used for exploration work and to define resources at the company’s gold projects in Mali and the Ivory Coast.
“By progressing the funding proposal with the investor [Riverfort] we are moving towards being fully funded to complete our focussed programme at our advanced Fatou and Nielle projects, including an exploration drilling campaign designed to delineate mineral resources,” said Kodal chief executive Bernard Aylward. “We are excited to commence these drilling campaigns, following which we plan to continue advancing the Dabakala project where our early-stage exploration continues to deliver excellent results.”
“We plan to complete a significant amount of field exploration in this current dry season while we await the granting of the mining licence application for the company’s flagship asset, the Bougouni lithium project,” he added.
Kodal has already received US$0.3mln from Riverfort. The additional funds are set to be drawn down in two equal tranches of US$1.1mln, with the second one subject to approval from Riverfort.
The funding proposal is for a 24-month secured convertible loan note (CLN) with no repayments before 18 months, and a 10% per year interest, rolled up and payable on maturity, and an implementation fee of 5% of each tranche advanced.
Riverfort has the right, but not the obligation, to convert all or part of any outstanding balance of the CLN, up to a maximum of US$1.25mln for a 20% stake in Kodal’s gold assets.