Kodal Minerals PLC (AIM:KOD)'s full-year earnings call on Wednesday was largely concerned with the progress of its Bougouni lithium mine in Mali.
During the reporting period, Kodal secured a $117.75 million (£93.8 million) funding package with Hainan Mining Co, $65 million of which is reserved to fully fund the cost of the Dense Media Separation (DMS) plant at Bougouni.
Post period, Kodal received $3.5 million as part of this funding package.
As part of its forward-looking plans, Kodal aims to expedite the development of its project to commence production at the earliest, leveraging the growing demand for lithium, driven by the surge in electric vehicles and battery-storage markets.
The directors remain optimistic about securing sufficient funding to cover ongoing expenses, banking on the potential prepayments from Hainan and the possibility of raising further equity, given the promising prospects of the Bougouni lithium project.
Chief executive Bernard Aylward stated: "We are now on the final furlong with our pre-construction activities at Bougouni and are well positioned to break ground and start building our mine once our funding transaction with Hainan has been finalised in the coming weeks.
“We have been working extremely closely with the teams at Hainan and Fosun over recent months, and we are grateful for their continued support as we look to close out the final conditions precedent of our joint agreement.”
The company is also exploring opportunities in the gold sector in Mali and Cote d'Ivoire, assessing projects to prioritise further exploration or to find avenues to enhance shareholder value.
Kodal’s cash balance as of 31 August was £1.98 million.