Shares in Kodal Minerals PLC (LON:KOD) tanked 44% after it announced that proposed acquisitions in West Africa would be satisfied though the issue of shares.
The mineral development and exploration company said the proposed acquisition of certain gold exploration properties in Mali and Côte d'Ivoire from Taruga Gold Limited for £410,000, are to be satisfied through the issue of shares.
The company also plans to raise £680,000 through a share placing.
The West African acquisition changed the company’s direction towards gold exploration at a time when there is increasing optimism of a resurgence in gold, said analysts at SP Angel.
“We look forward to news on the results of the recent drilling with Resolute Mining in Cote d’Ivoire and a continuing flow of results from across the portfolio as exploration proceeds,” said the broker.
Share price stood at 0.04p.