Kodal Minerals PLC (AIM:KOD) reiterated that construction work at the Bougouni lithium mine in Mali has accelerated recently following the end of an abnormally long wet season.
Structural steel erection work has progressed well with all major buildings taking shape, including the main DMS module, the crushing modules, the screening building and the filtration building, it added.
Negotiations are also progressing with partner Hainan over an offtake agreement for 100% of the spodumene production from the Stage 1 DMS processing plant.
The offtake agreement being negotiated between the operator joint venture KMUK (49% Kodal/51% Hainan) and Hainan will be based on market prices for spodumene, with a floor set to ensure that all costs are covered.
Offtake arrangements for Stage 2 production are outside of the scope of current negotiations with Hainan. Kodal added.
Talks are also ongoing with Hainan over payment of the final consideration for the licence transfer to a subsidiary of KMUK.
Losses in the six months to end September 2024 were £1.49 million (£509,000) with cash balances on 20 December 2024 of £17.5 million.
Bernard Aylward, Kodal’s chief executive, said the last six months had seen several significant milestones passed at Bougouni.
“The signing of the MoU with the Mali Government provides certainty of State support and will ensure the ongoing stability of Bougouni as we enter the critical production phase."
"Kodal remains in a strong financial position that will allow us to continue to explore our gold projects in Mali and Cote d'Ivoire as well as to review opportunities that offer further growth.”