Posting full-year results for the period to March 31, 2020, the group said it expects to see Bougouni move into the next stage of development, including final engineering design and financing negotiations for construction.
In the results statement, Kodal chairman Robert Woolridge reviewed what was a significant year of progress for Kodal and Bougouni.
“This year has again marked major developments for Kodal and our focus on the flagship Bougouni Lithium project. We have received an Environmental Permit following approval of our Environmental and Social Impact assessment ('ESIA') and have completed a Feasibility Study on the project.”
“This positive Feasibility Study underpinned the Company's Mining Licence application lodged with the Mali Government in January 2020.”
Woolridge added: “The outbreak of the Covid-19 pandemic at the beginning of 2020 caused significant disruption to global equity markets and impacted on our ability to readily raise funding for our ongoing development and exploration programmes at a crucial juncture.”
Nonetheless, in April, the company secured funds via a facility comprising an initial £500,000 share subscription followed by an equity sharing agreement that allowed further drawdowns over a 12-month period.
Kodal also sought to minimise group overhead during the pandemic to preserve working capital.
By July, the company entered into a US$1.5mln convertible loan note agreement with an initial US$750,000 released upon its closing.
In terms of Bougouni’s progress, Woolridge added: “The company is maintaining close contact with the Mali Government with respect to its mining licence application, and while timing remains unclear, we understand it continues to progress well through the government agencies and is awaiting only final documentary sign off.”
The pre-revenue explorer reported a £629,504 loss for the year ended March 31, down from £712,611 in the preceding year.