Kodal Minerals secures Ghana lithium project deal
The agreement gives Kodal the opportunity to earn an 80% interest in the Asamankese Lithium Project through exploration spending, cash payments and development milestones over five years
West African lithium producer Kodal Minerals has signed a binding agreement with GH Geo-Consult Limited (GGCL) to advance the Asamankese Lithium Project in Ghana.
Under the agreement, Kodal has the right to earn up to an 80% interest in the project through a staged earn-in structure involving cash payments, exploration expenditure commitments and technical project development milestones over five years.
The agreement is part of Kodal’s expansion plan into Ghana, where exploration work has identified lithium-bearing pegmatite trends at Amantra and Nfranta. Rock-chip sampling at the prospects has returned grades of up to 3.02% lithium oxide (Li₂O).
Kodal CEO Bernard Aylward said the project provides an opportunity to expand the company’s lithium interests in West Africa.
“Asamankese represents a strategic expansion of Kodal’s lithium footprint in West Africa and provides an exciting new growth opportunity in Ghana. Exploration to date has identified well-developed pegmatite trends at Amantra and Nfranta, with high-grade rock-chip sampling returning up to 3.02% Li₂O,” said Aylward.
He added that the current field programme is focused on refining target zones ahead of reconnaissance diamond drilling. The results will help determine the next stages of exploration at the project.
Following the agreement, Kodal and GGCL have established a joint venture company, Asamankese Lithium Ghana Limited, with initial shareholdings of 90% held by GGCL and 10% by Kodal’s subsidiary, Kodal Gold Limited Ghana (KLGL).
GGCL will apply to Ghana’s Minerals Commission to transfer the Asamankese prospecting licence to Asamankese Lithium Ghana Limited, as provided for under the agreement.
The staged earn-in arrangement will allow Kodal to increase its interest in the project as it meets the agreed financial, exploration and technical requirements over the five-year period.
Kodal will bring experience gained from the development and operation of its Bougouni Lithium Project in Mali to its work in Ghana. However, the company says further investment and exploration at Asamankese will depend on the project’s geological potential and the results of its systematic exploration programme.
“Through the successful development and operation of the Bougouni Lithium Project, our team have gained deep technical and operational expertise in lithium project development in West Africa. We look forward to applying this experience to Asamankese while evaluating the Project on its own geological merits,” said Aylward.
“At this stage, our focus is on a systematic exploration programme, with subsequent work and investment guided by the results,” he added.
