Kodal Minerals PLC (LON:KOD) has raised £250,000 to plug a funding gap following the collapse of stockbroker SVS Securities.

The mineral miner said it had raised the funds through the placing and subscription of 250mln new shares at 0.05p each, a 17% discount to its close price last Friday, as well as the placing of another 250mln shares at the same price that had originally been allotted to SVS after a fundraising in July.

WATCH: Kodal Minerals CEO updates on Bougouni engineering studies and permitting

Kodal was left with a funding shortfall after SVS fell into administration in August and defaulted on its commitment to pay for the 250mln shares.

The firm said it would also seek to recover the remaining shortfall between the 0.05p placing price and the 0.08p per share price that SVS had paid previously, as well as any other costs incurred from the default.

“We are pleased to have completed this fundraising to place out the SVS Shares and raise the resulting shortfall in funds from our July placing”, said Kodal’s chief executive Bernard Aylward.

He added that work at the company’s Bougouni Lithium project in Mali was continuing as expected and the company expected positive news regarding its Environmental and Social Impact Assessment “shortly”.

In early afternoon trading on Monday, Kodal shares were 17% lower at 0.05p.