Kodal Minerals is set to make history as West Africa’s first lithium producer listed on the London Stock Exchange by the fourth quarter of 2024. This milestone will be achieved when production begins at its Bougouni lithium project in southern Mali. On Tuesday, the company confirmed a significant $117.75 million (£89.75 million) funding package for the project's first stage, which was initially announced last November.

The funding package comes alongside news that Kodal Mining UK has acquired ownership of the Bougouni project in exchange for a $100 million investment from Hainan Mining, a subsidiary of Fosun International. Following this transaction, Kodal now holds a 49% stake in the Bougouni project.

Bernard Aylward, CEO of Kodal Minerals, expressed enthusiasm about the development, noting, “The past 12 months have been truly transformational for Kodal. As the Bougouni Lithium Project progresses in Mali, we are transitioning from developer to producer. Stage 1 production is firmly on track for Q4 2024, which will establish Bougouni as the first London-listed lithium producer.”

Aylward highlighted the significance of the Bougouni project in the global electric vehicle (EV) market, stating that Kodal’s lithium will supply feedstock to Hainan’s lithium hydroxide plant in China. This plant, in turn, supports Asian markets, including Japanese and Korean car battery manufacturers.

According to Kodal’s website, the Bougouni project is the first in a series of planned projects for West Africa. The mine, located 170 kilometers south of Mali’s capital Bamako, is adjacent to other mining operations such as B2Gold’s Fekola mine and Hummingbird’s Yanfolila mine. The Bougouni project is on schedule and within budget, with commercial production expected to start by Q4 2024.

In addition to the project update, Kodal reported a substantial 266% increase in net assets due to a rise in mineral resources. This positive news led to a 3% increase in Kodal’s shares, which closed at £0.50 in London on Tuesday.

Kodal aims to develop a diverse portfolio of battery metals assets in West Africa and establish itself as a major player in the production of critical minerals across this promising region. Founded and listed on London’s AIM market in 2013, Kodal Minerals acquired its flagship asset, the Bougouni Lithium Project, in 2016. Situated in southern Mali, 170 kilometers south of the capital Bamako, the project benefits from excellent infrastructure, including road and power logistics. Kodal aims to develop a portfolio of battery metals assets in West Africa, with Bougouni poised to be the first project to enter production in this mineral-rich and promising region.