Kodal Minerals PLC (AIM:KOD) closed out the financial year to March 2022 with just over £1mln in the bank.
The company booked a loss £903,000 for the year, after spending over £2.5mln on exploration and evaluation work at its gold and lithium projects in West Africa.
Post period end, Kodal successfully raised £3mln, and had a cash balance of just over £3.3mln at 8 July 2022.
The company has now secured a mining licence for the Bougouni lithium project in Mali, making it fully permitted for development and construction.
A six-month work programme to update the original feasibility study is now underway.
As it stands, life of mine revenue is set at over US$2bn.
"We are in the enviable position of owning 100% of the concessions of what I believe will become one of the most significant lithium spodumene producing projects in West Africa, and the first in Mali,” said Bernard Aylward, chief executive of Kodal Minerals.
“Prices of lithium spodumene have risen exponentially as global demand for this critical mineral shows no sign of abating, driven by the green agenda and the electric vehicle revolution.
"The work carried out by our team on the ground resulted in the successful receipt of our mining licence at Bougouni and initiated a six-month work programme to update the original feasibility study carried out in 2020.
"The results have further enhanced the project's already robust economic fundamentals with an IRR of 91%, a payback period of eight months and a life of mine revenue of approximately US$2.14bn, nearly a 50% increase on our original feasibility study estimate.”