Kodal Minerals PLC (AIM:KOD) told investors it has signed an off-take agreement for its Bougouni lithium project, in Mali, with Hainan Mining buying 100% of the spodumene concentrate product from the stage 1 DMS plant, for a four-year period.
It is a ‘take or pay’ deal covering a minimum of 8,000 wet metric tonnes per month.
Pricing will follow the Shanghai Metals Market rate, with standard grade and quality adjustments and no discount.
It includes an annual review of volumes and a floor pricing, effective from 1 January 2026.
Chief executive Bernard Aylward described it as “another important milestone” for Bougouni.
“The Off-Take Agreement confirms the strong interest of our development partner Hainan in the successful development of Bougouni and we look forward to our first export of product and first shipment to depart from the Abidjan port,” Aylward said in a statement.
"Discussions continue with the Mali Government to secure the export permit for the spodumene concentrate and the site operations team report that over 40,000 tonnes of spodumene concentrate is currently produced on site and available for export to Hainan."
The offtake agreement is between the Chinese buyer and Kodal’s 49%-owned, locally registered business Les Mines de Lithium de Bougouni (LMLB).