Kodal Minerals PLC (LON:KOD) 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.
In an update, the mineral explorer said the second and final advance of US$750,000 under its US$1.5mln convertible loan note agreement with Riverfort Global Opportunities and YA II PN Ltd meant it had sufficient funds to continue the gold exploration strategy at Bougouni, adding that progress on its mining licence application for the project has recommenced with all documents updated for the new ministry and interim constitution of the Mali Transition Government.
Kodal also said that under a memorandum of understanding (MoU) signed in September, Chinese state-owned engineering and construction group Sinohydro Corporation Limited is conducting an initial technical review and discussion with the firm prior to commencing field visits in November.
Gold exploration activity planned for Cote d’Ivoire is also expected to begin in November as seasonal rains ended and access opened.
“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.”, Kodal chief executive Bernard Aylward said in a statement.
“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”, the CEO continued.
“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”, he added.
Shares in Kodal surged 7.6% to 0.078p in early deals on Tuesday.