Kodal Minerals, known for lithium and gold exploration, has struck a decisive funding deal with its UK counterpart, Kodal Mining UK (KMUK), and Hainan Mining, alongside Xinmao Investment. This alliance, initially announced this year, underwent rigorous refinement to expedite the subsequent critical stage of mine development in Mali.
KMUK, a fresh subsidiary in the UK, takes charge of Kodal’s lithium treasures in Mali, sharing ownership with Kodal at 49% and Hainan at 51%.
“Our readiness to propel the mine’s monumental next phase is unequivocal,” Kodal CEO Bernard Aylward said on October 27. This statement came as the firms agreed to forgo certain conditions, streamlining the restructuring of Kodal’s Mali lithium assets.
According to a report by Mining Weekly, the transition necessitates the Bougouni mining license’s shift from Future Minerals to LMLB, KMUK’s Mali affiliate. It also entails the Sogola-Nord concession’s integration into KMUK. Following these maneuvers, Mali’s government will establish its equity in the venture, enshrining LMLB as the license custodian and operator.
While official nods from Mali’s geological body, the DNGM, are pending, Kodal asserts interim asset protection for KMUK. Meanwhile, Bougouni’s evolution doesn’t slow, thanks to Hainan’s financial infusion.
In this context, Kodal commits to $100 million in warranties, shielding the Bougouni license and Sogola-Nord concession transactions. These assurances, effective for two years after the shift, confirm the assets’ impeccable status at turnover.
With a projected capital boost of $117.75 million, the partners target an early November wrap-up. This anticipation extends the transaction’s cut-off to November 15, energizing Bougouni’s operational and expansionary activities.
Infrastructure advancements are in full swing, Aylward reports, including critical road enhancements. Teams are also hammering out the processing plant’s technical blueprint and advancing mine configuration off-site.
“This financial pact signifies a tremendous step for the Bougouni project,” Aylward affirms, reflecting Kodal’s unwavering resolve to fast-track production.
