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Kodal Minerals (LSE: KOD) says its Bougouni lithium project in southern Mali is on track for first production in the fourth quarter.
According to the company, the Bougouni stage 1 dense media separation (DMS) circuit is fully financed with all necessary permits in place, including environmental and social permits, and Kodal’s community development plan was recently approved by Mali’s environment ministry.
The miner said it’s received all funds from the $117.75 million equity financing with Hainan Mining announced early last year. The financing closed in November, giving the Chinese miner a 14.7% stake in Kodal. Hainan also owns a 51% stake in Kodal’s UK subsidiary.
“This month we also signed contracts for the supply of the crushing circuit and DMS modules from experienced suppliers in China, and expect these long lead items will be available on site in time to maintain our expectation of first production in Q4 2024,” Kodal Minerals CEO Bernard Aylward said.
Kodal said the mining contractor is scheduled to mobilize this month.
In addition, its updated environmental and social impact assessment (ESIA) for the project has been approved, and negotiations with local communities on land compensation are advancing.
Located 170 km south of the capital city Bamako, Kodal’s Bougouni project is situated in an area hosting several established mining operations, including Hummingbird’s Yanfolila mine and B2Gold‘s (TSX: BTO) Fekola mine.
Kodal is in competition with Australia’s Leo Lithium (ASX: LLL) to develop Mali’s first lithium mine. Kodal received its licence in late 2021, while Leo Lithium, now backed by China’s Ganfeng Lithium, was awarded the right to develop its Goulamina asset in August 2019.
Shares of Kodal Minerals fell 8.5% by 12:10 p.m. EDT. The lithium developer has a market capitalization of $129 million.
