12th Aug 2019 13:58
(Alliance News) - Kodal Minerals PLC said Monday it may not receive GBP200,000 it is supposed to get from SVS Securities PLC, which is currently under administration.
In July, Kodal Minerals had an agreement for SVS to subscribe for 250.0 million shares for GBP200,000 as part of a placing, however on Monday last week, SVS was placed in special administration.
Kodal intended to raise GBP575,000 in total through the issue 718.8 million shares at a price of 0.080 pence each.
SVS participation in the placing was to be settled on a delivery versus payment basis in CREST, however, that settlement has been suspended, and that Kodal will not be receiving the money immediately.
Shares in the lithium producer were down 9.0% at 0.066 pence on Monday.
Kodal, through its broker SP Angel Corporate Finance LLP, will seek clarification from the special administrators of SVS on whether they intend to meet SVS' payment obligations.
Despite the shortfall of funds raised through the placing, Kodal said it will continue to advance the development of the Bougouni lithium project in Mali. However, the company might delay its exploration and expansion drilling it was planning to undertake in October.
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