REG - Kodal Minerals PLC - Commencement of arbitration

Kodal MineralsAnnouncement

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RNS Number : 1005V  Kodal Minerals PLC  03 March 2026

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

 

Kodal Minerals plc

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

 

3 March 2026

 

Commencement of arbitration

 

Kodal Minerals (AIM: KOD), the West African lithium producer, mineral
exploration and development company, announces the commencement of arbitration
proceedings regarding a claim by Kodal Mining UK Limited ("KMUK") for
indemnification in respect of the US$15 million payment made to the Government
of Mali, as originally announced on 5 November 2024. Kodal has yesterday filed
its response to the notice of arbitration received from KMUK.

 

KMUK is a company owned 51% by Hainan Mining Co. Ltd ("Hainan") and 49% by
Kodal.  KMUK is a company established to hold the Bougouni Lithium Project
and lithium exploration assets in southern Mali.

 

Kodal highlights that it has undertaken meetings and had correspondence with
representatives of Hainan since the announcement on 5 November 2024 to discuss
the issues surrounding the indemnity claim. However, unfortunately these
discussions have not resulted in a resolution of the matter.

 

Kodal has set out in its response its opinion that the US$15 million sum paid
to the Malian Government pursuant to the binding Memorandum of Understanding
announced on 1 November 2024 in relation to the transfer of the Bougouni
Lithium Project mining licence to the mining company Les Mines de Lithium de
Bougouni and migration of the project to the Malian 2023 Mining Code is not a
liability for tax to be indemnified by Kodal pursuant to the Hainan funding
transaction announced on 19 January 2023. The Company is also considering its
position in relation to potential associated claims or counterclaims.

 

Kodal will keep shareholders informed of progress in the arbitration claim as
appropriate.

 

 

**ENDS**

For further information, please visit www.kodalminerals.com
(http://www.kodalminerals.com) or contact the following:

 

 Kodal Minerals plc

 Bernard Aylward, CEO                                                  via Burson Buchanan
 Allenby Capital Limited, AIM Nominated Adviser

 Jeremy Porter/Vivek Bhardwaj                                          Tel: 020 3328 5656
 SP Angel Corporate Finance LLP, Financial Adviser & Joint Broker

 Stuart Gledhill/Adam Cowl                                             Tel: 020 3470 0470
 Canaccord Genuity Limited, Joint Broker

 James Asensio/Charlie Hammond                                         Tel: 020 7523 4680
 Peel Hunt LLP, Joint Broker

 Ross Allister/David McKeown/Georgia Langoulant                        Tel: 0207 418 8900
 Burson Buchanan, Financial PR

 Bobby Morse/ Abigail Gilchrist                                        Tel: +44 (0)20 7466 5000

                                                                       kodal@buchanancomms.co.uk

 

About Kodal Minerals

Kodal Minerals plc, the AIM-quoted West African lithium explorer, developer
and producer, is the co-developer of its flagship Bougouni Lithium Project in
Southern Mali alongside its partner Hainan Mining Co. Ltd, a subsidiary of
Hong Kong-listed Fosun International.

The Bougouni Lithium Project covers 350km² in the world-class Birimian
terrain of West Africa, located approximately 180km south of Mali's capital
Bamako. The Stage 1 Dense Media Separation ('DMS') processing plant achieved
first spodumene concentrate production in February 2025 and made its first
shipment of concentrate in December 2025. A Stage 2 Flotation plant is
planned in future years to process the finer-grained resources within the
Bougouni deposit.

Bougouni is operated by Les Mines de Lithium de Bougouni SA ('LMLB'), a
subsidiary of Kodal Mining UK Limited ('KMUK') which owns the project and in
which Kodal has a 49 per cent shareholding.

The Company also has a number of early-stage gold assets in its diverse
portfolio located in West Africa.

For more information on Kodal, please visit kodalminerals.com
(https://kodalminerals.com/)

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