Kodal Minerals PLC (AIM:KOD) said Hainan Mining Co. Limited has now received all necessary approvals from the Chinese government authorities to allow it to complete its funding and investment agreement with the company.
As announced on 19 January 2023, the funding package will provide full financing for the development and commencement of production at Kodal's Bougouni lithium project in Mali and support a major exploration and development programme.
The mineral exploration and development company said the approvals received by Hainan include 'Overseas Project Investment Filing Certificates' from the Hainan Province National Development and Reform Commission (NDRC) and Company Overseas Investment Certificate from the Department of Commerce of Hainan Province.
Kodal said it is working to complete a number of conditions precedent (CPs) for closing in relation to the Hainan Funding Agreement which includes the reorganisation of its subsidiary companies to have all its Mali lithium assets held within Kodal Mining UK (KMUK), including the Bougouni project.
In a statement, Bernard Aylward, CEO of Kodal Minerals, commented: "The receipt by Hainan of these approvals from the China government authorities to allow Hainan to complete its investment into the development of the Bougouni lithium project is a major step towards completing the transaction. Kodal is continuing to finalise its CPs for the transaction and expects to achieve the deadline date of 30 April 2023 for completion."
"The Kodal technical team is currently in Hainan Province visiting the executives and technical specialists of Hainan Mining. We will also be taking the Hainan team to Mali to introduce them formally to the Mali government officials and to conduct site visits, and undertake further discussions relating to the development of Bougouni. Kodal and Hainan remain committed to moving quickly into construction once the financing transaction is complete and all funds received," he added.