Business
Placement and Off-Take Agreement
Placement and Off-Take Agreement.
About this update from Kodal Minerals Plc
[{"type":"text","content":"\n \nRNS Number : 0850Z Kodal Minerals PLC 10 March 2017 \n\n \nKodal Minerals Plc / Index: AIM / Epic: KOD / Sector: Mining\n10 March 2017\nKodal Minerals plc ('Kodal Minerals' or 'the Company')\n \nCompletion of £500,000 Placing, Proposed Off-Take Agreement & Proposed £4.3 million Strategic Investment \n \nKodal Minerals plc, the mineral exploration and development company focussed on West Africa, is pleased to advise that is has completed a £500,000 share placing (the \"Placing\") and entered into an agreement to commence negotiations for an off-take agreement for the future spodumene concentrate produced from its Bougouni Lithium Project, in Southern Mali (the \"Project\") as well as a potential further investment into the Company of up to £4.3 million (the \"Agreement\"). \n \nHighlights\n· Agreement is with Suay Chin International Pte Ltd (\"Suay Chin\"), a Singapore registered company formed to take advantage of its extensive connections to supply the Chinese lithium market with a range of clients from acid producers to lithium carbonate producers and to the final lithium-ion battery manufacturer.\n· Suay Chin has strong support from Shandong Mingrui Chemical Co Ltd, which is a long-term supplier to existing lithium carbonate producers in Shandong Province. \n· £500,000 placing completed with Suay Chin at an issue price of £0.003 per share for the issue of 166,666,667 new ordinary shares of 0.03125 pence each in the Company (the \"Placing Shares\") - representing a 30% premium to the closing share price on the date prior to this announcement.\n· The Company and Suay Chin have agreed to commence negotiations immediately for an off-take agreement over 20% of the spodumene concentrate to be produced from the Project, with potential for this to increase to 100% at a later date.\n· The Agreement allows Suay Chin a period of 30 days to undertake due diligence on the Company and the Project, including conducting site visits, preliminary metallurgical testing and confirmation of geology.\n· Following the due diligence period and if successful, the Agreement contemplates Suay Chin completing a second share placing within a further 15 days (or 30 days with Kodal's...