Kodal Minerals Advancing Towards Lithium Production at Bougouni Facility in Q4

Kodal Minerals (LSE: KOD), has provided an update on its Bougouni lithium project located in southern Mali, confirming that it is still on schedule for its initial production in the Q4.

The company has meticulously ensured that the Bougouni stage 1 dense media separation (DMS) circuit is fully financed, securing all requisite permits, including environmental and social permits. A significant regulatory milestone was achieved with the recent approval of Kodal’s community development plan by Mali's environment ministry.

The company confirmed the receipt of all funds from the $117.75 million equity financing provided by Hainan Mining, as announced in the early part of last year. The financing concluded in November, resulting in Hainan Mining acquiring a 14.7% ownership stake in Kodal. Additionally, Hainan holds a majority 51% stake in Kodal’s UK subsidiary.

Highlighting recent developments, Bernard Aylward, CEO of Kodal Minerals, emphasized the signing of contracts with reputable Chinese suppliers for the provision of the crushing circuit and DMS modules. This move ensures timely availability of essential components on-site, facilitating the targeted commencement of production in Q4 2024. Additionally, Kodal has set the mobilization of the mining contractor for this month.

Furthermore, Kodal has obtained authorization for the revised environmental and social impact assessment (ESIA) for the Bougouni project. Positive progress is underway in negotiations with local communities regarding land compensation. Positioned approximately 170 km south of Bamako, Mali's capital city, the Bougouni project area is renowned for hosting several established mining operations, including Hummingbird's Yanfolila mine and B2Gold's Fekola mine, listed on the Toronto Stock Exchange under the ticker symbol BTO.

Kodal finds itself in active competition with Australia's Leo Lithium (ASX: LLL) to establish Mali's inaugural lithium mine. While Kodal secured its license in late 2021, Leo Lithium, now backed by China’s Ganfeng Lithium, received approval for its Goulamina asset development in August 2019. This competitive scenario underscores the burgeoning interest and investment in lithium projects within Mali's mining sector.

Kodal Minerals Plc, headquartered in the United Kingdom, focuses on exploring and developing mineral assets across three segments: West African Gold projects, West African Lithium projects, and UK administration operations. Specializing in mineral exploration and development, the company actively engages in projects primarily situated in West Africa. With a diverse portfolio spanning gold and lithium assets, Kodal is committed to advancing its projects and unlocking their potential value. The company's UK administration operations provide essential support and management functions to facilitate its exploration and development activities.