Kodal secures $117.75 million for development of Bougouni lithium project in Mali
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(Kitco News) - Kodal Minerals (AIM: KOD) yesterday announced that it has agreed a conditional funding package of US$117.75 million which will provide full financing for the development and commencement of production at the Bougouni lithium project in Mali and support a major exploration and development programme.
According to a company statement, the funding package has been agreed with Hainan Mining Co. which will acquire a 51% shareholding in Kodal's newly incorporated UK subsidiary, Kodal Mining UK Limited ("KMUK").
The company added that KMUK will become the shareholder of a new Mali mining company to be formed by Kodal to own and develop the Bougouni lithium project. In addition, Hainan will complete an equity subscription into Kodal Minerals for US$17.75 million, becoming the largest shareholder in the company at approximately 14.8%.
CEO Bernard Aylward commented, "This is a great outcome for Kodal following a competitive and complex process to ensure we received appropriate recognition for the underlying value of this asset. We are very pleased to welcome the Hainan Group as investors into Kodal and as partners for the development of the Bougouni lithium project. This investment provides us with a great opportunity to fast track to production of spodumene concentrate in a very strong market."
"Funds from the KMUK funding transaction will be available to KMUK to, amongst other things, undertake further exploration activities to seek to further extend the Bougouni mine resource, develop other lithium pegmatite veins within the project area and assess opportunities for additional projects," the company noted in a press release.
Kodal said it expects a processing capacity of 1Mtpa of lithium ore to produce up to 130,000 tonnes per annum of spodumene concentrate, adding that it plans a short construction period with the plant estimated to be operational 12 months from receipt of funds.
Kodal Minerals is a mineral exploration and development company focused on lithium and gold assets in West Africa.
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