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Kodal Minerals to co-operate with Mali Lithium as they both advance separate mine projects

"The two companies are operating in the same region of Mali and intend to develop similar lithium mining operations. It makes strong sense for the companies to work together where possible to improve the operations and financial return on the projects"

Kodal Minerals PLC - Kodal Minerals to co-operate with Mali Lithium Limited as they both advance separate mine projects

Kodal Minerals PLC (LON:KOD) has inked an agreement with Mali Lithium Limited (ASX:MLL) which is developing the Goulaminia project, located close to the AIM-firm’s Bougouni property.

A memorandum of understanding envisages a “general cooperation and investigation of synergies” for the respective projects, Kodal told investors.

Specifically, Kodal noted that the two companies recognise the potential to improve each project through the sharing of infrastructure and operational support.

Via the MOU, the companies intend to co-operate with the sharing of ‘pre-development’ facilities in the town of Bouguoni (where they presently have separate offices), the establishment of common workshop, servicing, storage and catering facilities.

WATCH: Kodal Minerals CEO details Mali Lithium agreement and lodging of mining licence

They will also look at establishing common supply chains for spares, reagents, fuel and other consumables, a joint strategy for transport and shipping, as well as a joint effort in terms of community development.

“Kodal Minerals recognises that the potential synergies of development with MLL can have significant beneficial effect on the development capital required as well as ongoing operating expenses throughout the life of mine,” said Bernard Aylward, Kodal chief executive.

"The two companies are operating in the same region of Mali and intend to develop similar lithium mining operations. It makes strong sense for the companies to work together where possible to improve the operations and financial return on the projects," he added.

Earlier this week, Kodal revealed findings of a completed feasibility study for Bougouni.

The study envisaged a project with a minimum 8.5-year mine life producing an average of 220,000 tonnes of 6% spodumene concentrate per annum. Recoveries are expected to run at around 71%, based on laboratory metallurgical recoveries of 75%. Life of mine revenues are expected to exceed USD$1.4bn, with an initial concentrate sale price of US$680 per tonne.

Kodal plans to build a two million tonnes per year processing plant utilising a conventional flotation circuit to maximise spodumene recovery.

The estimated cash costs ring in at USD$431 per tonne of concentrate and total capex is set at US$117mln plus contingency. It all adds up to post tax net present value of approximately US$200mln, and an internal rate of return of 58%, or 51% post tax.

Quick facts: Kodal Minerals PLC

Price: 0.0575 GBX

LSE:KOD
Market: LSE
Market Cap: £5.32 m
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Full interview: Kodal Minerals CEO details Mali Lithium agreement and...

Kodal Minerals PLC's (LON:KOD) Bernard Aylward caught up with Proactive London's Andrew Scott soon after announcing they've signed an agreement with Mali Lithium Limited (ASX:MLL). MLL's developing the Goulaminia project which is located close to Kodal's Bougouni property. Aylward says the...

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