Kodal Minerals PLC (AIM:KOD) confirmed the receipt of the US$7mln deposit in relation to the US$118mln funding package announced last month to finance the Bougouni lithium project in Mali and support a major exploration and development programme.
The AIM-listed exploration and development company agreed the funding deal with Hainan Mining and its UK-incorporated arm Xinmao Investment to drive Bougouni through to production.
Approval from Chinese and Mali authorities is needed, with Hainan stating that the progress of the outward direct investment application is proceeding as planned.
The Mali government will also need to approve the necessary restructuring of Kodal's existing subsidiary in Mali, which is to become a wholly owned subsidiary of Kodal's newly incorporated UK subsidiary, Kodal Mining UK.
Suay Chin International, which had contractual pre-emption rights, elected not to subscribe for shares under the offer period so will be diluted to a shareholding in Kodal of 12.08%.
Kodal said it has continued the engineering, environmental and social work at Bougouni to ensure it has been able to maintain momentum to fast track the mine development.
With one reverse circulation drill rig and one diamond drill rig on site, the company said drilling with the former began on 18 January and 806m completed so far, while diamond drilling started on 22 January with a focus on geotechnical drilling and 385m of completed to date.
Kodal said holes will be initially logged by one of its geologists, with a consultant geotechnical engineer expected to visit the site at the completion of the programme to complete all geotechnical reviews and reporting for the open pit design work.
Environmental and social activities were also reported to have continued, with additional surface water samples collected and dispatched for analysis, with consultants Digby Wells on site to manage the location of the water bore drilling and assessment of groundwater intersected.
The engineering and development programme to fast-track Bougouni is continuing and updates will continue to be regularly announced as appropriate.