Make Kitco Your Homepage

Kodal Minerals secures more funding to continue with the Bougouni development

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Kodal Minerals shares pushed over 10% higher in early EU trade after the firm said it is “well funded” to continue development of its Bougouni lithium project in southern Mali as it secured additional financing from a loan agreement.

Compounding on the good news the company also confirmed the Mali Transitional Government now fully active and progress on Mining Licence application re-commenced with all documents updated for new Ministry and Interim Constitution. This was previously a sticking point as political problems in the area could have slowed the project down. 

Bernard Aylward, CEO of Kodal Minerals, commented: "Completing this final advance of the Loan Agreement allows Kodal to continue its exploration and development programmes for the Bougouni Lithium project including planning of further engineering design and metallurgical testwork to optimise the process plant design.  This mining project development work will be completed in conjunction with the review and assessment of the project by Sinohydro under the MoU.  Work under this important MoU is continuing with Sinohydro completing translation of the extensive technical documents and commencing questions and comments following initial review.  It is expected that Sinohydro will commence fieldwork at Bougouni in November.

 "The Mining Licence application continues and Kodal can confirm that all Government documents have been updated to reflect the changes to the Mali Transition Government Ministry and the operation of the Constitution and the Charter of Transition.  The documents are pending signing by the new Minister which will then allow the Company to receive notification of requirement to pay for the Mining Licence.  Kodal is monitoring this situation and will provide updates when information is received.

 "Finally, we will commence the gold exploration programme in November in Cote d'Ivoire, as previously described, following the cessation of the seasonal rains.  This initial programme will focus on the exciting Dabakala geochemical anomaly as we look to define this area for first pass drilling to determine the potential for gold mineralisation to be discovered."

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.