REG - Kodal Minerals PLC - Mining Licence Transfer and Project Update

Kodal MineralsAnnouncement

04/04/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250404:nRSD6954Da&default-theme=true

RNS Number : 6954D  Kodal Minerals PLC  04 April 2025

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ("MAR")

Kodal Minerals Plc / Index: AIM / Epic: KOD / Sector: Mining

4 April 2025

Kodal Minerals plc

("Kodal Minerals", "Kodal" or the "Company")

 

Update on Mining Licence Transfer and Project Update

 

Kodal Minerals, the mineral exploration and development company, is pleased to
provide an update in relation to activities at the Bougouni Lithium Project,
located in Southern Mali ("Bougouni" or the "Project"), including the status
of the Mining Licence transfer and the ramp up of production. Construction of
Bougouni is near completion, and the Project achieved first lithium spodumene
concentrate product in February 2025 (as announced by the Company on 11
February 2025). The Project is owned and operated by Kodal Mining (UK) Ltd
("KMUK") in which Kodal has a 49% interest.

 

Highlights:

·    The Bougouni Lithium Mine Dense Media Separation ("DMS") processing
plant has produced over 11,000 tonnes of spodumene concentrate to date and is
ramping up towards commercial production.

·    For the last week of March 2025, the DMS processing plant processed a
total of 13,400 tonnes of material, producing 1,920 tonnes of spodumene
concentrate grading 5.63% Li(2)O.

·    Export of the spodumene content to the Port of Abidjan in Côte
d'Ivoire and then to China is expected to occur as soon as possible when the
Bougouni Mining Licence is transferred and the associated permit for export of
product is received from the Government.

·    Transfer of the Mining Licence from Future Minerals SARL to the Mali
registered mining company Les Mines de Lithium de Bougouni SA ("LMLB") is
progressing, with all updates to LMLB's company structure complete and signed
off by the relevant Mali Government ministers. The Mining Licence transfer
application is awaiting final approval and signing by the President of Mali,
Assimi Goïta.

·    Due to the delay in transferring the Mining Licence, KMUK has
formally requested an extension of time for the second payment of US$7.5m to
the State of Mali (the "State"), as specified in the binding Memorandum of
Understanding (as outlined in the Company's announcement of 1 November
2024).  The Mali Government has acknowledged receipt of KMUK's extension
request letter and a response is pending.

 

Bernard Aylward, CEO of Kodal Minerals, remarked: "I am pleased to confirm
that the ramp-up and optimisation of the Project and DMS processing plant is
progressing and, positively, we are seeing ongoing improvements through the
modifications and adjustments to the DMS processing plant as advancements
continues."

 

"The team has created a considerable stockpile of spodumene concentrate ready
for transport and sale, equivalent to the first month of expected
production.  We are continuing to increase the stockpile, which provides
confidence in the ability of the operation to meet the proposed production
schedule of 11,000 tonnes of concentrate per month."

 

"Additionally, the Company continues to assist KMUK in its work with the Mali
Government for the transfer of the mining licence to KMUK's local subsidiary,
LMLB. The update of LMLB's company structure to include the Mali Government's
shareholding has been completed and all necessary compliance has been approved
by the Ministers of Mining and Finance. We look forward to receiving sign off
from the President of Mali shortly, marking the successful completion of the
transfer."

 

FURTHER INFORMATION

Mining Licence Transfer

KMUK experienced delays beyond its control in relation to the finalisation of
the Mining Licence transfer to LMLB. All formalities required by the
administrative process are completed and signed off by the Ministers of Mining
and Finance. The application for transfer has been forwarded to the Council of
Ministers for the signature of the President of Mali to finalise the
transfer.

 

KMUK's management team in Bougouni hosted a delegation from the Department of
Mines on 3 April 2025, who were accompanied by two special advisers of the
President of Mali. The delegation requested and were provided with a tour of
the Project, a presentation advising the status of the Project, and a
demonstration of KMUK's commitment to prioritising local content.

 

KMUK was able to highlight the local content achievements and demonstrated the
high percentage of local contractors and labour engaged at the Project site.
Currently, KMUK has a total of 555 personnel on site (including contractors),
of which 531 are Malians (95.7%). Amongst that number, we are pleased to
report that a total of 344 personnel are employed from the local communities.
 

 

Construction and Plant Optimisation

Commissioning of the Project is near completion and the DMS processing plant
has operated at steady state with consistent throughput. Nameplate capacity of
the DMS processing plant has not yet been achieved on a consistent basis, but
with further improvements and modifications being finalised, we look forward
to confirming that milestone and the commencement of commercial production in
due course. Importantly, plant availability and forecasted mining rates were
achieved, and at times are exceeding expectations.

 

The DMS processing plant has now produced over 11,000 tonnes of spodumene
concentrate that is currently stored at the Bougouni site.  For the last week
of March 2025, the DMS processing plant processed a total of 13,400 tonnes,
producing 1,920 tonnes of spodumene concentrate grading 5.63% Li(2)O.  The
DMS processing plant is continuing operations and the stockpile of spodumene
concentrate continues to grow.

 

The open-pit mining activity continues steadily, and the stockpile of feed
grade ore remains in a healthy state, with approximately 220,000 tonnes of
mineralised pegmatite ore on the run-of-mine  pad ready for crushing and
processing.

 

A small amount of construction activity continues at the Project, including
site drainage works around the plant site. Remaining site works will be
completed this month and construction of the site camp and associated
facilities will continue.

 

The construction of a new road to provide improved access to the village of
Ngoualana located approximately 3km west of the Bougouni Lithium mine is
nearing completion.  The new road will improve ease of access for the local
communities in this area and locally has received overwhelming support.

 

**ENDS**

 

For further information, please visit www.kodalminerals.com or contact the
following:

 

 Kodal Minerals plc

 Bernard Aylward, CEO                                                  Tel: +61 418 943 345

 Allenby Capital Limited, Nominated Adviser

 Jeremy Porter/Vivek Bhardwaj                                          Tel: 020 3328 5656

 SP Angel Corporate Finance LLP, Financial Adviser & Joint Broker

 John Mackay/Adam Cowl                                                 Tel: 020 3470 0470

 Canaccord Genuity Limited, Joint Broker

 James Asensio/Charlie Hammond                                         Tel: 0207 523 4680

 Burson Buchanan, Financial PR

 Bobby Morse/Oonagh Reidy                                              Tel: +44 (0)20 7466 5000

                                                                       kodal@buchanancomms.co.uk

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDIIMATMTIMMTA