London mineral explorer and developer takes over Mali lithium project
London headquartered mineral exploration and development company Kodal Minerals PLC announced that it has become the 100 per cent holder of the Bougouni Lithium Project in Southern Mali.
These acquisitions result in Kodal having 100 per cent interest in all concessions of the Bougouni Lithium Project with the concessions all held in the name of Kodal’s Malian subsidiary companies.
Kodal has acquired the retained 10 per cent interest in concessions from original owners Gorutumu Mining SARL and Triumvirat Mining Company SARL.
The terms of the acquisitions are for each vendor to receive a cash payment of $600,000 for a total payment by Kodal of $1.2m and a net smelter return royalty for production attributed to each vendor’s relevant concessions of 0.6 per cent such that Kodal will pay a 0.6 per cent NSR over all production.
Bougouni Project’s initial feasibility studies announced in January 2020 indicate a minimum 8.5-year mine life producing on average 220,000 tonnes of 6 per cent spodumene concentrate per annum, with a total life of mine production of 1.94Mt of concentrate and life of mine revenue exceeding $1.4bn.
Bernard Aylward, CEO of Kodal Minerals, commented: “The Bougouni Lithium Project has consistently demonstrated the potential for the development of a new long-life lithium mine in southern Mali.
“These acquisitions further strengthen Kodal’s ability to negotiate value accretive development opportunities and financing structures, which will be key as we move towards our construction phase.
“The timing of the potential development of the Bougouni project comes at a time where we continue to see an exponential increase in lithium demand and an associated positive pricing environment.
“Kodal looks forward to the approval of its Mining Licence application for Bougouni which is with the office of the Prime Minister awaiting final signature. Updates to shareholders will be provided as soon as further information is available.”
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