Kodal Minerals PLC (AIM:KOD) shares jumped 20% as a US$3.5 million payment from China came through as part of the funding package for the Bougouni lithium project.
Hainan Mining stumped up the money, which is repayable or convertible into Kodal shares should a funding package not be agreed.
Bernard Aylward, Kodal's chief executive, added: "This prepayment does not add further dilution to our shareholders and confirms the confidence of both parties in being able to finalise the funding package.
"Kodal continues to work with the Government of Mali in the finalisation of the new mining company, LMLB, and the transfer of the mining licence to it.
“Under the Mali mining code, the Government will have an initial free-carried interest of 10% of the project and the right to purchase an additional 10% of the project."
Shares rose 0.1p to 0.57p.