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Kodal Minerals, a mineral exploration and development company focused on its Bougouni Lithium Project, has acquired the Fatou Gold Project in southern Mali
Fatou already has a historical compliant NI 43-101 Resource of more than 350,000oz which is expected to increase based on a funded nine-month drilling programme. In conjunction with the acquisition, Kodal Minerals has received a subsidiary-level project funding proposal from AIM-quoted Riverfort Global Opportunities PLC and Riverfort Global Opportunities PCC to provide up to US$2.5mn to fund part of the acquisition, implement a major exploration campaign at Fatou and fund exploration at the company’s additional gold projects in Mali and Côte d’Ivoire.
A term sheet has been signed for the proposed funding which remains subject to due diligence and a final contract being executed.
Bernard Aylward, CEO of Kodal Minerals, commented, “The Fatou Project provides an opportunity for the company to confirm and expand a mineral resource through an expanded and targeted exploration programme financed through the proposed new funding agreement with the investors. This acquisition is part of Kodal’s strategy to demonstrate the value of our gold assets in West Africa whilst simultaneously establishing our first mining operation at our Bougouni Lithium Project in southern Mali.
“The US$2,500,000 funding from the Investors would allow Kodal to explore rapidly our gold projects with a clear aim of defining mineral resources and demonstrating expansion and mining potential. Once concluded, this funding is extremely positive for our shareholders as it enables us to fund the acquisition of a new advanced gold project and also to explore and aggressively drill our gold projects while incurring low or no dilution to existing shareholders. The creation of a Joint Venture following the spend of the funding will allow Kodal to explore opportunities to achieve value for the gold assets in the future.
“Kodal’s existing gold assets are located within the highly prospective Birimian sequence of West Africa. At our Dabakala project in Cote d’Ivoire we are currently completing infill geochemical sampling on a large-scale geochemical anomaly, 10km strike by 800m width, in a previously untested region. In Mali, our Nangalasso project contains gold mineralised drill intersections requiring follow-up and extension drilling which will be included in the expanded gold exploration programme.
“The company’s primary focus remains the Bougouni Lithium Project. The company is maintaining regular communications with the Mali Transition Government to monitor the progress of the Bougouni Lithium Project’s Mining Licence application. Bougouni is our key focus and will be the company’s first opportunity to develop a mining operation in Mali. We anticipate the grant of a mining licence at Bougouni from the Mali Transitional Government in the near term and look forward to updating our shareholders and stakeholders on developments when appropriate.”