Kodal Minerals PLC said on Monday it may not be able to recover £200,000 from SVS Securities PLC.

In July, Kodal Minerals struck a deal with SVS to subscribe for 250m shares for £200,000, but last Monday SVS went into administration.

Kodal plans to raise £57,500 by issuing 718.8 million shares at 0.080p each.

The placement in which SVS participated was to be settled on CREST's delivery and payment basis, but that settlement has been suspended and Kodal could not immediately receive the payment.

Kodal shares fell 9.0% to 0.066 pence per share on Monday.

Kodal, through its broker SP Angel Corporate Finance LLP, will consult with SVS special administrators as to whether they intend to meet SVS payment obligations.

Despite the insufficient funds raised through the placement, Kodal said it will continue to advance the development of the Bougouni lithium project in Mali.

However, the company may delay its planned exploration and drilling expansion in October.