Kodal Minerals PLC (LON:KOD) is raising new money via a financing agreement with Riverfort Global Opportunities PCC Limited and YA II PN Ltd.
The company has limited working capital and, therefore, the board has determined that the financing facility with Riverfort is in the best interests of the company and shareholders.
Although the monthly payments to the company under the facility are variable, it is expected to provide sufficient monthly funding for the company to operate at the limited capacity and reduced budgeted costs it has outlined previously.
Riverfort and YA have subscribed for 1.4bn Kodal shares at a price of 0.035p, raising £500,000.
The subscription proceeds will be used immediately to satisfy the company's obligation to pay £500,000 to the investors to enter into an equity sharing agreement, under which the Investors shall make monthly cash payments to the company for a period of 12 months.
Kodal Minerals continues to pursue its mining licence application and the company has maintained communication with the Mali government to determine when the next meeting will be called to complete the Financial and Ministerial review. Kodal has completed all information to be submitted.
The government of Mali has restricted international travel and closed its borders to people travelling from countries with coronavirus infection.
In light of the travel restrictions, the company said it cannot at this stage provide guidance for the timing of the meeting or the overall mining licence application process.
The company has also announced that directors will be paid in shares rather than cash for all fees owing over the past six months.