Kodal Minerals has tweaked the terms agreed to terminate the right of first refusal (ROFR) granted to Suay Chin over 80% of the spodumene product produced at the Bougouni lithium project in Southern Mali.
Suay Chin's agreed termination fee of US$14 million payable by Kodal Mining UK, the Bougouni company 51% owned by Hainan Mining, will now be paid in three instalments, rather than two.
An amount of US$3.5 million has already been paid, which has triggered the termination of the ROFR and associated term sheet.
An additional US$3.5 million is to be paid within 10 business days of the signing of an offtake agreement between KMUK and Hainan Mining and the final US$7 million within 10 business days of the first shipment of spodumene concentrate from Bougouni or 31 October 2024, whichever date is earlier.
Kodal added that it and KMUK are continuing negotiations with Hainan to finalise an offtake agreement for 100% of the spodumene product produced at Bougouni.
Any offtake agreement reached between KMUK and Hainan will be based on market prices for spodumene and require express written approval from Kodal Minerals as a shareholder of KMUK.
Shares in Kodal rose by 4.6% to 0.46p.