Government of Mali and Kodal Mining UK Limited agree terms of Bougouni Lithium Project Mining Licence transfer
Kodal Minerals, the mineral exploration and development company, is pleased to provide an update on the transfer of the Bougouni Lithium Project mining licence from Future Minerals SARL to the Mali registered mining company Les Mines de Lithium de Bougouni SA (“LMLB”). The Bougouni Lithium Project located in Southern Mali (“Bougouni” or the “Project”) is fully funded through the US$117.5m Hainan funding transaction (as announced by the Company on 15 November 2023) (the “Hainan Transaction”). The Hainan Transaction included a US$100m investment into Kodal Mining UK Limited (“KMUK”), a company owned 51% by the Hainan Group and 49% by Kodal, which is the developer of the Project and parent company of Future Minerals SARL and LMLB.
Highlights:
· KMUK and the State of Mali (the “State”) have entered into a binding memorandum of understanding (the “MoU”) to finalise the transfer of the Project mining licence to the established mining company LMLB.
· The MoU confirms that the mining licence will migrate to the 2023 Mining Code of Mali with the following key terms:
o The participation of the State and national private investor interest will be a total of 35% of the equity in the mining company LMLB, with the balance of 65% held by KMUK.
o The mining licence will transfer with an initial 10 year term and the State undertakes to renew the licence as required with the conditions laid down in the mining code in force on the date of such renewal.
o The MoU confirms the continuation of the customs and duties exemptions during the construction phase as well as confirming that the State will grant all necessary permits for operation including export permits for the spodumene product.
o The parties have agreed to a US$15 million cash payment to the State relating to the Hainan Transaction, payable in two equal instalments by KMUK, with the first following signing of the MoU and the final prior to 31 March 2025.
o Upon completion of transfer of the mining licence the MoU confirms that the Bougouni mining licence will be in full compliance with all legal requirements and in good standing.
Bernard Aylward, CEO of Kodal Minerals, remarked: “The MoU with the State for the transfer of the Bougouni mining licence is the final legal step required as we rapidly progress the construction of the Project, with production on track for the first quarter of 2025. The transfer of the mining licence to the mining company LMLB confirms the good standing of the Project and provides certainty of State support and ongoing stability of Bougouni. The strong partnership built between Kodal and the State has allowed discussions to be accelerated, culminating with this landmark MoU.”
For further information, please visit www.kodalminerals.com or contact the following:
Kodal Minerals plc
Bernard Aylward, CEO
Tel: +61 418 943 345
