Kodal Minerals PLC (AIM:KOD) has said that a statement from partner Hainan Mining concerning the binding MoU on the Bougouni project between the Mali government and the pair’s joint venture company, KMUK, is not consistent with discussions held thus far.
In the statement, Chinese group Hainan said that a US$15 million payment due to the Mali Government is in respect of taxes due.
Hainan added that according to the KMUK financing agreements entered into between the parties on 19 January 2023, taxes arising from the US$117.5 million funding for Bougouni should be borne by Kodal.
KMUK, which is 51% owned by Hainan and 49% by Kodal, is reserving its rights in respect of any claim against the company in relation to the US$15 million payment, Hainan added.
In response, Kodal said that it “notes that it was not consulted by Hainan on its announcement released today and that the position stated by Hainan is not consistent with the discussions and correspondence between the parties and the Mali Government in connection with the finalisation of the MOU.
“Kodal's understanding of the position reached with Hainan is that all parties acknowledged that the US$15 million payment would be borne by KMUK".