Kodal Minerals secures more funding to continue with the Bougouni development
(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."