Kodal Minerals PLC (AIM:KOD) has concluded an agreement to terminate the right of first refusal (ROFR) with Suay Chin International for the Bougouni Lithium Project in Mali.
The original agreement with Suay Chin in 2017 granted it a ROFR for over 80% of the spodumene produced at Bougouni.
This has been cancelled, allowing Kodal greater flexibility in offtake agreements.
Bernard Aylward, chief executive of Kodal, said: "As (Kodal) pushes ahead with development at our flagship Bougouni Lithium Project aiming for first production before the end of calendar year 2024, the team has also been working to finalise the offtake agreements for the sale of our spodumene product.
“Our negotiations with our JV partner Hainan have thus ensured that we will achieve the optimum market price for our spodumene with no discount offered and we are now confident of achieving this positive result for all our product from Bougouni.”
Kodal will pay Suay Chin US$14 million (£11 million) under the termination agreement.