Kodal Minerals plc
Kodal Minerals plc
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A $US117.75M conditional package from Chinese company Hainan Mining will fully fund West African-focused Kodal Minerals’ development and commencement of production at its Bougouni lithium project in Mali.
The deal is the first entry into hard rock pegmatite mining and processing for Hainan, an iron ore, oil and gas subsidiary of global consumer group Fosun International.
A revised feasibility study has delivered further incentive for Kodal Minerals to proceed with the immediate development of its Bougouni lithium project in S Mali.
The new study, reflecting the improved market outlook for lithium spodumene concentrates, shows capital costs rising to $US154.3M from $128.6M previously and net cash costs also rising to $520/t ($465/t) on unchanged production of 16Mt at 1.03% lithium over 8.5 years.
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Mine producers and developers report no impact to date but border closures and likely regional bans in response to Mali’s military closures pose threat to operations in Africa’s fourth largest gold producer.
International miners active in Mali are reporting no impacts on their operations to date from the political crisis that has seen the resignation of president Ibrahim Boubacar Keita and dissolution of the national assembly under pressure from sections of the military.
Resolute Mining says its Syama gold mine, in southern Mali close to the border with Côte d'Ivoire, is operating as normal with no impact on the safety and security of employees and contractors.
The appointment of new project manager Steven Zaninovich sees Kodal Minerals transition into the development phase of its Bougouni lithium project in S Mali.
Kodal is targeting first production in 2020 at Bougouni, where it has established an inferred JORC maiden resource of 17.3Mt @ 1.2% for 207,900t contained Li2O.
A new independent processing review has flagged a $A14M, 1Mtpa dense media separation plant component for Kodal Minerals’ Bougouni Lithium Project in S Mali, along with a maiden 17.3Mt inferred resource at 1.20% Li2O from the 3 most advanced prospects.
The Sogola-Baoule deposit has 10.4Mt at 1.18% Li2O, Ngoualana 4.7Mt at 1.34% and Boumou 2Mt at 1.01%, using a 0.5% Li2O lower cut. Mineralisation captured within these conceptual open pits totals 13.2Mt at 1.2% Li2O.
Spodumene develorer Kodal Minerals has finalised a £4.3M equity and off-take agreement with Singapore-based Suay Chin Int’l, completion of which will give it 20% of Kodal and increase its off-take agreement from 20% to 80%-100% of the spodumene product from the Bougouni Lithium Project in S Mali.
UK-based Kodal is set to begin negotiations with Singapore-registered Suay Chin International on an off-take agreement for over 20% of future spodumene concentrate production from its Bougouni lithium project in southern Mali. Suay Chin, supported by Shandong Mingrui Chemical Co, may increase its off-take to 100%.
UK-based explorer Kodal has halted the planning process for its namesake phosphate and titanomagnetite project in Norway, choosing instead to prioritise development of its recently acquired high grade lithium projects in Mali and its wider gold portfolio in West Africa.
The company fully impaired Kodal in its FY15 financial statements due to falling iron ore prices, and says it wants to avoid further management time or costs. It has until July 2023 to restart the process.
Kodal Minerals will accelerate work on its Kodal phosphorus and iron (titanomagnetite) project in southern Norway with the proceeds of an over-subscribed £1.25M placing of 100M at 1.25p with new investors and existing shareholders.
The funds will be used to to extend site engineering works for environmental and social impact assessment, additional metallurgical and detailed geotechnical work.
Kodal will improve the on-site work base and make further investments to progress the Norwegian planning process.