Kodal Minerals PLC (AIM:KOD) told investors it received $7.5 million, as an initial drawdown from its $15 million loan facility with Hong Kong Xinmao Investment.
The funds will support ongoing development at the Bougouni Lithium Project in Southern Mali and have been deployed to complete the final payment to the Mali government. The loan has a ten-month term and carries interest at 15% per annum.
"With the completion of the MoU payment and the recently announced mining licence transfer, the Bougouni project team are now working to secure the necessary export permit as the final item required to commence spodumene concentrate sales,” chief executive Bernard Aylward said in a statement after Wednesday’s close.
He added: "As the ramp-up of the DMS processing plant continues, we see regular improvements in the operation and the production of spodumene concentrate.
“We anticipate reaching nameplate capacity in the next quarter and entering steady state production."
Currently, the ramp-up project’s processing plant has produced over 20,000 tonnes of spodumene concentrate to date.
Open-pit mining, meanwhile, is ahead of schedule, building a stockpile ahead of the wet season and ready to support steady state production.
In London, Kodal shares were up 5.7% in Thursday morning’s trade.