Kodal Minerals (AIM: KOD) has secured an agreement to acquire up to an 80% interest in the Asamankese Lithium Project in Ghana, expanding its West African portfolio after exploration identified high-grade lithium mineralisation of up to 3.02% Li₂O.
The West African lithium producer and exploration company has entered into a binding agreement with GH Geo-Consult Limited covering the 156-square-kilometre Asamankese project, located approximately 75 kilometres by road from Ghana’s capital, Accra.
Under the agreement, Kodal has acquired an initial 10% interest for US$300,000, including an earlier US$50,000 exclusivity payment, with the option to increase its ownership to 80% through staged exploration investment and development milestones over approximately five years.
Historical rock-chip sampling returned lithium grades of up to 3.02% Li₂O, while Kodal’s initial exploration has confirmed the presence of spodumene-bearing pegmatites across the licence area.
The company’s own sampling programme collected 164 rock-chip samples, with 95 returning grades above 1.0% Li₂O and a maximum assay of 2.49% Li₂O.
The results have identified two priority exploration areas, Amantra and Nfranta, where extensive pegmatite systems offer targets for further investigation.
The Amantra prospect contains mapped pegmatite mineralisation extending for more than three kilometres, including coarse-grained spodumene observed in surface outcrops.
At Nfranta, multiple pegmatite bodies have been identified across a combined strike extent exceeding four kilometres, with geological structures remaining open along strike.
The project is situated within Ghana’s Birimian geological sequence, a region associated with gold, base metals and lithium-bearing pegmatite deposits.
Previous exploration has mapped 42 major and 27 minor pegmatite bodies across the concession, providing an established geological database to guide Kodal’s drilling strategy.
Kodal plans to commence initial diamond drilling before the end of 2026, with field mapping, additional rock-chip sampling and surface geochemical surveys already underway.
A local drilling contractor has been engaged to undertake the initial programme using smaller diamond drill rigs designed to minimise surface disturbance.
The company has also appointed Abdul-Razak Shaih Ballah as Ghana Country Manager, supported by a local geological team with previous experience at the Ewoyaa lithium project.
The team’s knowledge of Ghanaian lithium exploration, environmental management and community engagement is expected to support the early development of Asamankese.
Under the staged agreement, Kodal can increase its interest to 30% through a US$1.25 million first-stage commitment, covering exploration expenditure and a completion payment over an initial six-month period.
A second stage requires a further commitment of US$4 million and completion of an initial Mineral Resource Estimate, increasing Kodal’s ownership to 60%.
The final stage involves a US$7.5 million commitment and completion of a Definitive Feasibility Study, allowing Kodal to increase its interest to 80%, with its Ghanaian partner retaining 20%.
Kodal retains the option to discontinue further expenditure at any stage while keeping the ownership interest already earned.
Chief Executive Bernard Aylward described Asamankese as a strategic expansion of the company’s lithium portfolio, highlighting the encouraging initial assay results and extensive pegmatite trends identified across the project.
He said Kodal intends to apply its experience gained through the development and operation of the Bougouni Lithium Project in Mali while assessing Asamankese on its own geological merits.
The company will use the initial drilling results to determine future exploration priorities and investment commitments.
For investors, the agreement provides Kodal with exposure to another potentially significant West African lithium project, supported by encouraging surface sampling results and a staged investment structure that limits immediate financial commitments.
However, the project remains at an early exploration stage, with no declared mineral resource, and the high-grade rock-chip samples cannot yet establish the size or continuity of economically recoverable mineralisation.
Attention will now turn to the planned diamond drilling programme before the end of 2026, with initial assay results expected to provide a clearer indication of Asamankese’s lithium potential and guide Kodal’s next investment decisions.
