Kodal Minerals has acquired the minority shareholdings of the original vendor parties of the Project. These acquisitions result in Kodal having 100% interest in all concessions of the Bougouni lithium project with the concessions all held in the name of Kodal’s Malian subsidiary companies.
Bernard Aylward, CEO of Kodal Minerals, commented:
“The Bougouni Lithium Project has consistently demonstrated the potential for the development of a new long-life lithium mine in southern Mali. These acquisitions provide Kodal and its shareholders with 100% ownership of the Bougouni concessions and full exposure to development of the existing 21 Mt at 1.1% Li2O that is defined at the Project, as well as continued expansion through ongoing exploration activity.
These acquisitions further strengthen Kodal’s ability to negotiate value accretive development opportunities and financing structures, which will be key as we move towards our construction phase.
“The timing of the potential development of the Bougouni project comes at a time where we continue to see an exponential increase in lithium demand and an associated positive pricing environment.
“The strongly rising prices for spodumene concentrate highlight the opportunity for Bougouni’s development with recent pricing levels reported of over US$1,360 per tonne 5% Li2O spodumene concentrate, compared with the initial US$680 per tonne for 6% Li2O spodumene concentrate used in the 2020 Feasibility Study.
“Importantly, a major source of lithium demand continues to be from the growing use of new energy vehicles in Chinese industry. Recent reports that Beijing is eyeing a 40% share of new energy vehicles and clean energy-powered vehicles in the country’s total vehicles by 2030, doubled from an earlier target of 20% by 2025, underpins both the quantum of lithium demand in this market, and also the critical window for increased production to support these objectives.
“Bougouni is an advanced project with a relatively short time horizon to first production, ensuring Kodal is ideally positioned to capitalise on these market dynamics.
“Kodal looks forward to the approval of its Mining Licence application for Bougouni which is with the office of the Prime Minister awaiting final signature. Updates to shareholders will be provided as soon as further information is available.”