Kodal Minerals PLC (AIM:KOD) and Hainan Mining have agreed on the completion of the Bougouni Lithium Project funding package first announced in January, following the deadline extension announced in Septmeber.
KMUK is the Company's new UK-registered subsidiary formed to be the holder of the Mali lithium assets which will be owned 49% by Kodal and 51% by the Hainan Group.
The agreement follows the waiving of certain conditions relating to the reorganisation of Kodal's Mali lithium assets, including the transfer of the Bougouni mining licence from Future Minerals SARL to KMUK's new Mali subsidiary, Le Mines de Lithium de Bougouni (LMLB).
The Mali government will become a shareholder in the subsidiary mining company following completion of the transfer and finalisation of shareholder agreements and LMLB has been established to be the holder of the Bougouni mining licence and operator of the mine.
Kodal and Hainan are looking to finalise all remaining compliance items as soon as possible with the expected transfer of money ($117.75 million in total) expected in the first half of November 2023.
Bernard Aylward, chief executive of Kodal Minerals, stated: "Kodal and Hainan are both very keen for the next important stage of mine development to commence as soon as possible.
"The development activity is progressing on site with the road upgrades to provide access for the start of construction of site infrastructure. Off-site Kodal, Hainan and our consultants are continuing to finalise the engineering design of the processing plant as well as progressing mine design and site optimisation.
"The completion of the funding package transaction is a major milestone for the development of the Bougouni Lithium project, and we are looking forward to working closely with our partners to achieve production as soon as possible from the Bougouni Lithium mine."