Kodal Minerals, the mineral exploration and development company focused on the Bougouni Lithium Project in Mali (“Bougouni”) and its gold assets in West Africa, pleased to announce the Annual Report of Kodal Minerals plc (“Kodal” or the “Company” and together with its subsidiaries, the “Group”) for the year ended 31 March 2021.
The Company’s Annual Report and Accounts will be made available on the Company’s website www.kodalminerals.com by 3 September 2021.
Chairman’s Statement
I am pleased to present the Annual Report of Kodal Minerals plc (“Kodal” or the “Company” and together with its subsidiaries the “Group”) for the year ended 31 March 2021.
This has been an extraordinary and, at times, difficult year with the worldwide impact of the Covid-19 pandemic as well as turbulence in financial markets and other operational pressures. Our Company was not immune from such challenges, however I am pleased to report that all Kodal staff, consultants and employees remain safe and healthy and the Company continues to prioritise the welfare and security of its personnel. We have also closely monitored the political situation in Mali and, following a period of political upheaval, we are pleased to note the commitment of the transitional government to undertaking new elections in February 2022.
Our focus for this coming year will be on the development of our Bougouni Lithium project in Mali. Our mining licence application is passing through its final approvals and we expect to receive our mining licence in the near future, which is the final approval needed for the project to be fully permitted for development. The Company will continue its development plans including the further optimisation and design of the proposed open pit mines, the refinement of the processing flowsheet to include updated metallurgical testwork and the potential scheduling of development.
In 2021 we have seen a resurgence of interest in the lithium sector driven by the focus of governments, industry and consumers on the future of energy usage and storage and on the implementation of infrastructure projects. The demand for lithium continues to exceed previous forecasts as the utilisation of lithium-ion batteries increases in the green energy solutions both on a large infrastructure scale as well as on the personal level through vehicles and personal devices. Kodal’s advanced project is well positioned to take advantage of this supply shortfall and the strongly rising prices for the lithium spodumene concentrate will underpin our efforts to secure financing for the Bougouni project development.
Kodal has also expanded its portfolio of gold exploration projects during the year with the acquisition of the Fatou gold project located in southern Mali. This is an advanced exploration project where previous work has outlined the potential for the Company to delineate a mineral resource with targeted drilling which is scheduled to take place later this year. Kodal also regained management of and retained a 100% interest in the Nielle gold concession in northern Cote d’Ivoire following the termination of the joint venture with Resolute Mining Limited (“Resolute”). Previous exploration work had identified a new zone of gold mineralisation and our recently completed drilling campaign has returned very encouraging high-grade gold mineralisation that requires further follow-up. Kodal has developed and is implementing an exploration programme across its gold projects in Mali and Cote d’Ivoire with the aim of rapidly defining new mineral resources that will underpin the value of these highly prospective assets.
During the year, Kodal has successfully completed a number of fundraisings. These included a £0.5 million equity financing facility and a $1.5 million convertible loan note, both of which have been fully converted, with no further amounts outstanding to the Investors. In March 2021, we successfully completed an equity fundraising of £3.5 million (before expenses) that has resulted in Kodal moving into the new year in a strong financial position.
This coming year offers great opportunity for Kodal with the focus on our Bougouni lithium project in a very positive market as well as our exciting gold exploration and development projects. I look forward to reporting to you on our progress during this year.
Robert Wooldridge
Non-executive Chairman
25 August 2021
OPERATIONAL REVIEW
Kodal’s operational focus during this year has been on progressing the mining licence application for the key Bougouni Lithium project that was initially lodged in January 2020. The approval of this application has been delayed due to the impact of the Covid-19 pandemic, however we have been very pleased with the progress of the application in the first half of 2021 with the final approval meetings being held in May 2021. We are confident that the process of obtaining the final permit is on-track and no further information or payment is required from the Company.
In addition to advancing the mining licence application, we have continued to review our proposed mining and processing operation for the Bougouni Lithium project. The focus of this work has been on defining improvements in the processing flow sheet to lead to an expected increase in the metallurgical recovery of the lithium bearing spodumene minerals. This has a significant impact on the profitability of the proposed operation and this review work continues to indicate a very robust project.
Kodal has also taken the opportunity to expand its gold portfolio through the acquisition of the Fatou project in southern Mali and we have taken back management of the Nielle and Tiebiessou concessions in Cote d’Ivoire following the termination of the Joint Venture with Resolute. Details of the gold projects and proposed exploration are summarised in the sections below.
Concession and Exploration Licence Review
Kodal maintains extensive tenure in Mali and Cote d’Ivoire. Kodal’s management ensures that all government compliance, reporting and fees are kept up to date and all concessions are retained in good standing.
Kodal’s Bougouni and Bougouni West lithium exploration projects are located in southern Mali, with the rights and concessions held by subsidiary company Future Minerals SARL (“Future Minerals”), a Malian registered company owned 100% by the Group. During the year, the Company agreed modifications to the Foulaboula, Sogola Nord and Fariedele concessions with the Direction Nationale de la Geologie et des Mines (“DNGM”) of Mali in preparation for the granting of the mining licence. The new mining licence will be issued to replace the Foulaboula concession and the changes were agreed to ensure all areas of mineralisation and the proposed mining infrastructure and processing plant for Bougouni are included within the one licence area.
Kodal acquired the Fatou project in December 2020 consisting of the Fininko and Foutiere concessions located in southern Mali. These concessions are prospective for gold mineralisation, and details of the concessions are included in the link below.
Bernard Aylward
Chief Executive Officer
25 August 2021
