West Africa-focused mineral exploration and development company Kodal Minerals announced on Monday that it has raised £1m, before expenses, through a placing of 666,666,667 new ordinary shares
of 0.03125p each, at a price of 0.15p per share, with a range of new and existing investors.
The AIM-traded firm said the net proceeds of the placing will be used to advance and accelerate the exploration programme at the company's 500 square kilometre Bougouni Lithium Project in Mali, fund certain exploration activities across its 100% owned gold properties, as well as for funding working capital requirements.
Recent work, including reverse circulation drilling and rock chip sampling, has continued to highlight the prospectivity of the Bougouni Project, the board said, with the results of the RC drilling programme expected to be announced by the end of January 2017.
The board added that it intends to accelerate development at Bougouni in the near term including drilling at some of the newly identified pegmatite veins as well as follow up work based on the drill results once received.
"The company's recent exploration activity at the Bougouni Lithium Project continues to highlight the high grade lithium mineralisation and the potential of the project to host significant mineralisation," said CEO Bernard Aylward.
"This placing will allow the company to accelerate our exploration activities with a further programme of drilling to follow on from the recently completed work as well as to test the newly identified high-grade pegmatite veins."
Aylward said the excitement in the lithium market was continuing to build, and the exploration and discovery of high-grade lithium mineralisation is rapidly developing in Mali.
"The recent announcement of a proposed sale of the neighbouring lithium project owned by Australian Stock Exchange listed Birimian Limited to a Chinese buyer for AUD 107.5m highlights the strategic value being placed on high grade Malian lithium projects, and the value which can be achieved through exploration.
"With this in mind we are keen to accelerate and expand our exploration programme."
He said that was a strategy "clearly" supported by shareholders, as evidenced by the fundraising.
"These funds will enable us to ramp up our exploration campaign and deliver on our near term milestones."