Kodal Minerals PLC (AIM:KOD) this week outlined further progress at its Bougouni lithium project in Mali, as it edges closer to the export phase.
The company said it had secured a loan agreement of up to $15 million from a subsidiary of Hainan Mining.
Kodal Minerals highlighted that the funds were used to complete a Memorandum of Understanding payment after receiving a one-month extension from the Malian government.
Proactive: Bernard, you’ve announced further progress with the Bougouni projects. A subsidiary of Hainan Mining has provided a loan agreement for up to $15 million.
I suppose that sets you up nicely following the receipt of that mining license as you progress towards exports?
Bernard Aylward: Exactly. This continues the work we've been doing with a prudent approach to our negotiations with the government. We've taken the funds from Hainan to finalise the payment of the MoU.
You may recall that we've written to the government requesting an extension.
We received the extension for one month. We've now paid that MoU in full.
That brings us closer to the threshold for export payment.
As you know, we announced a few weeks ago the transfer of the mining license to our established mining company, Les Mines de Lithium de Bougouni.
We're really moving well with these negotiations and final steps with the government, as well as what we're seeing on the site.
Proactive: In the meantime, you continue to ramp up the dense media separation at the Bougouni lithium project.
Take us through that and the amounts of spodumene that you've actually built up in the meantime?
Bernard Aylward: We're very pleased with what we're seeing on site.
The ramp-up is continuing well. We're making improvements through the crushing circuit, the feed into the DMS plant, and adjusting that plant to make sure we get a good quality product.
We have over 20,000 tonnes produced on site now. That’s at least two months' worth of shipments.
The value of that exceeds the value of this loan facility we received.
We still retain funds within our KMUK operating company. It's a prudent measure to ensure our negotiations continue to go well with the government.
In terms of the site, the open pit mining is going well. We've still got a significant stockpile. The plant is operating well.
The improvements we're seeing continue to justify the time we're spending. We're building up a lot of spodumene ready to go.
Proactive: And the sorts of feedback you're getting back from the government, Bernard?
Bernard Aylward: On every level, from the local communities, the local government, through to the federal, we maintain strong relationships with the government.
They are as keen as we are to get this project into production and export.
Our team met with the DMGM, the mining bureaucracy and Minister of Mines, yesterday to discuss the project and some things we're working around the mine to improve.
We expect to be able to demonstrate, on a follow-up visit from the DMGM, the significant improvements we've made.
We know they're pleased with what they’re seeing.
Proactive: In the meantime, you're finalizing the necessary permits for export so you can start shipping to China. Is that right?
Bernard Aylward: Exactly. We've got our transport contract. We've been able to demonstrate our willingness to participate in local content.
That’s been part of our MO since we started in Mali.
We use local contractors wherever available. The transport contract is a big and public contract, so again, it supports us to proceed with the local contractor.
This move to export is the final step for us.
We've demonstrated along the way that our history of working well with the government supports us during these negotiations.
Proactive: Bernard, I hope you'll continue to keep us posted on your progress.