The Kodal Minerals PLC (LON: KOD) share price fell 2.91% after issuing an update about the ongoing development of its Bouguoni Lithium mine in Mali and the funding package agreed with Hainan in January this year. The company noted that it was progressing well with its detailed engineering works for the DMS (dense media separation) plant.
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The DMS plant will allow the company to quickly start producing lithium by taking advantage of the coarse-grained spodumene prevalent at the Ngoualana deposit. The company has been using part of the US$3,500,000 prepayment made by Hianan to progress the design of the DMS plant.
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The company revealed that it had submitted the phased development (change) notification to the Direction Nationale de la Geologies et des Mines (DNGM) under the 2019 Mali Mining Code. Furthermore, the company’s executives and executives from Hainan made some site visits and met government officials recently to discuss the mine’s progress.
Kodal and Hainan representatives met with the Director General of the DNGM to discuss the Bougouni Lithium Project’s progress and the commencement of site development.
After finalising the registration of its new subsidiary mining firm in Mali, Le Mines de Lithium de Bougouni SA (“LMLB”), the company has now submitted the required formal notification outlining the change to a phased development approach.
The design of the DMS plant is about to be completed, and the procurement specifications are about to be finalised in readiness for the drawdown of the US$100 million funding package from Hainan, which is yet to get the final regulatory approvals in Mali.
Bernard Aylward, CEO of Kodal Minerals, remarked: “Kodal and Hainan continue to work closely together to finalise the major funding package as announced on 19 January 2023, and significant progress is being made towards completion. Kodal and key Hainan representatives have met in Mali to meet with government officials and undertake site visits in preparation for the commencement of development.”
“The Phase 1 DMS development plan provides a fast-track pathway to lithium concentrate production at comparatively low capital costs and an expected construction timeline of around 12 months, exploiting the coarse-grained spodumene prevalent at the Ngoualana deposit.”
Kodal Minerals share price.
The Kodal Minerals share price fell 2.91% to trade at 0.534p, from Thursday’s closing price of 0.550p.
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