Kodal secures US $117M for Bougouni lithium project
Kodal Minerals has successfully secured significant funding for the development of its Bougouni lithium project in Mali.
The firm revealed that a sum of US $117M was sourced from Hainan Mining and its UK subsidiary Xinmao Investment. Hainan Mining invested $100 million in Kodal’s UK unit, Kodal Mining UK (KMUK) and additionally made a $17.75 million equity subscription into Kodal at 0.5p per share. As a result, Hainan Mining now owns 14.72% of Kodal and holds a 51% stake in KMUK.
Bougouni lithium project
The Bougouni lithium project is located 180km from Mali’s capital, Bamako. It covers a 350km² area and is anticipated to host several open-pit lithium mining operations. Kodal Minerals acquired the project in late 2016, obtained a mining license in Q4 2021, and is now planning for the construction phase.
An updated mineral resource estimate from early 2019 indicates that the project has a mineral resource of 21.3 million tonnes at 1.11% lithium oxide (Li₂O). The estimate includes 11.6 million tonnes at 1.13% Li₂O in the indicated category and 9.7 million tonnes at 1.08% Li₂O in the inferred category.
Southern Mali is emerging as a lithium province, and Kodal Minerals’ focus on developing the Bougouni project aligns with the growing demand for lithium, particularly in the context of electric vehicle batteries. Kodal Minerals has attracted investors and off-take partners interested in securing a long-term supply of lithium, indicating confidence in the project’s potential.
