An update on financing from Kodal Minerals (LON: KOD) gave its share price a 17 percent boost in early trading.
The minerals exploration and development company offered an update on both financing and its lithium and gold projects that was well received by investors.
Firstly, it announced a drawdown of $750,000 as part of the final advance of a previously agreed $1.5m unsecured convertible loan agreement.
Secondly, it offered some reassurance on its lithium and gold projects.
Essentially, the finance secured will allow it to continue its Bougouni Lithium project and its gold exploration programme is due to commence in November:
“Completing this final advance of the Loan Agreement allows Kodal to continue its exploration and development programmes for the Bougouni Lithium project including planning of further engineering design and metallurgical testwork to optimise the process plant design. This mining project development work will be completed in conjunction with the review and assessment of the project by Sinohydro under the MoU. Work under this important MoU is continuing with Sinohydro completing translation of the extensive technical documents and commencing questions and comments following initial review. It is expected that Sinohydro will commence fieldwork at Bougouni in November.
Finally, we will commence the gold exploration programme in November in Cote d’Ivoire, as previously described, following the cessation of the seasonal rains. This initial programme will focus on the exciting Dabakala geochemical anomaly as we look to define this area for first pass drilling to determine the potential for gold mineralisation to be discovered.”Bernard Aylward, CEO of Kodal Minerals