29th Apr 2016 09:51
LONDON (Alliance News) - Kodal Minerals PLC on Friday noted an activity report from Taruga Gold Ltd, the company from which it is hoping to purchase a string of gold exploration opportunities in Mali and the Ivory Coast.
The exploration company operating in Norway earlier this month said it had entered into a conditional agreement to purchase Taruga Gold's subsidiary International Goldfields (Bermuda) Ltd, which holds the gold exploration assets.
The acquisition is conditional as, under the deal, Kodal plans to issue shares to Taruga and conduct an additional fundraising, which will make its share capital multiply by 3.6.
Kodal is also proposing the appointment of Bernard Aylward as Kodal's new chief executive. If the acquisition goes through, Aylward will be appointed to Kodal's board. Aylward has served as the managing director of Taruga Gold and is also a director of the subsidiary set to be acquired by Kodal.
Shareholders will vote on the propositions at a general meeting to be held on May 13.
Kodal said on Friday that, during the quarter to March 31, IG Bermuda and its joint venture partner Resolute Mining Ltd completed wide-spaced reconnaissance aircore drilling at the Tiebissou concession, and stream sediment, soil and rock chip sampling at the Nielle concession. Kodal said the granting of the M'Bahaikro concession is progressing through the Cote d'Ivoire ministry.
Kodal also noted that progress had also been made at IG Bermuda's farm-in agreement with Newcrest Mining Ltd for the Dabakala concession, and said Newcrest has commenced an auger drilling geochemical sampling programme to target the gold anomalous structures.
"IG Bermuda's projects are located in proven gold regions of West Africa underpinning their potential and we are pleased with the work undertaken during the period, which should deliver results in the coming months," said Kodal Chief Executive Luke Bryan.
"We intend to continue with the strategy of ground acquisition and early low-cost exploration to highlight the potential value of exploration projects followed by further detailed exploration alongside joint venture partners. We look forward to meeting with shareholders on May 13 where we hope we will finalise the steps necessary to complete our acquisition," Bryan added.
Shares in Kodal were down 2.4% at 0.0415 pence on Thurday.
By Hannah Boland; [email protected]; @Hannaheboland
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