Kodal Minerals PLC (AIM:KOD) and Hainan Mining have agreed to a long stop extension until 30 June 2023 to ratify the financing package for the Bougouni lithium project in southern Mali.
Bernard Aylward, Kodal's chief executive, commented the delay was disappointing but added: "The parties remain committed to the transaction and are working together on the preliminary engineering and development processes required to ensure we move quickly into development upon completion and receipt of funds."
Meanwhile, Kodal has reported more high-grade intersections from drilling at Boumou, one of the targets at Bougouni, the best of which was 24 metres (m) at a grade of 1.13% Li2O from 55m down.
Boumou is being explored to boost the mineral resource overall.
Drilling at another target, Bougouni South, also recorded significant lithium mineralised intersections but additional exploration including diamond drilling is required to determine structural control and extent of mineralisation, Kodal said.
At Ngoualana, prospect diamond drill holes were completed along the strike to obtain variability test samples and these returned wide high-grade intersections up to 37m at 2.17% Li2O from 3m to end of hole in one case.
"The assay results received for the drilling campaign continue to demonstrate significant extensions at the Boumou prospect with wide high-grade pegmatite zones further extended," said Aylward.
"Upon completion of the next phase of drilling at the Boumou prospect, the JORC Mineral Resource estimate will be updated to be included in the long-term planning and the timing of the possible further development of a flotation plant at Bougouni in addition to the initial proposed DMS (dense media separation) plant.
"The company is continuing with the final metallurgical testing and engineering design for the proposed DMS development.”