MOU signed with Mali Lithium Limited
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR")
Kodal Minerals Plc / Index: AIM / Epic: KOD / Sector: Mining
29 January 2020
Kodal Minerals plc ('Kodal Minerals' or the 'Company')
MOU signed with Mali Lithium Limited to explore synergies for the development of the Bougouni Lithium Project
Kodal Minerals, the mineral exploration and development company focused on its Bougouni Lithium Project in southern Mali, is pleased to announce it has signed a Memorandum of Understanding ("MoU") with Mali Lithium Limited ("MLL"), an Australian Securities Exchange ("ASX") listed company looking to develop the Goulaminia Lithium Project located proximal to Kodal Mineral' Bougouni Lithium Project. The MoU is for general cooperation and investigation of synergies in the development of their respective projects.
The two companies recognise the potential to improve the development of each project through the sharing of certain infrastructure and operational support and under the MoU, will review the following key areas for cooperation:
· pre-development, sharing facilities in the closest town of Bouguoni, where both companies currently have separate facilities to support exploration and fieldwork;
· establishment of common workshop, servicing, storage and catering facilities;
· establishment of common supply chains for spares, reagents, fuel and other consumables;
· joint strategy for transport and shipping; and
· joint approach to community development.
In addition to exploring operating synergies, the companies intend to negotiate an access agreement for the N'Kemene Ouest and Mafele Ouest concessions ("Bougouni West Project") that are owned by Kodal Minerals via the Bamabara option agreement.
Bernard Aylward, CEO of Kodal Minerals, remarked: "Following the completion of our Feasibility Study and the lodging of our mining licence application for the Bougouni Lithium Project, Kodal Minerals is continuing to work on optimising and improving its development. Kodal Minerals recognises that the potential synergies of development with MLL can have significant beneficial effect on the development capital required as well as ongoing operating expenses throughout the life of mine.
"The two companies are operating in the same region of Mali and intend to develop similar lithium mining operations. It makes strong sense for the companies to work together where possible to improve the operations and financial return on the projects."
**ENDS**
For further information, please visit www.kodalminerals.com or contact the following:
|
Kodal Minerals plc Bernard Aylward, CEO |
Tel: +61 418 943 345
|
|
Allenby Capital Limited, Nominated Adviser Jeremy Porter/Nick Harriss
|
Tel: 020 3328 5656 |
|
SP Angel Corporate Finance LLP, Financial Adviser & Broker John Mackay
|
Tel: 020 3470 0470 |
|
St Brides Partners Ltd, Financial PR Catherine Leftley/Cosima Akerman
|
Tel: 020 7236 1177 |
About Kodal Minerals
Kodal Minerals' primary focus is on the rapid advancement towards production of its flagship Bougouni Lithium Project in Southern Mali. The JORC Resource Estimate places the Bougouni Project in the top 15 hard rock lithium projects globally and was calculated using only three of the eight currently recognised prospects demonstrating the significant exploration upside potential remaining across the 450km2 project area. The Mineral Resource estimate for the Ngoualana, Sogola-Baoule and Boumou prospects are tabulated below. These mineral resources are reported in accordance with the JORC Code:
|
Prospect |
Indicated |
Inferred |
Total |
||||||
|
Tonnes (Mt) |
Li2O% Grade |
Contained Li2O (kt) |
Tonnes (Mt) |
Li2O% Grade |
Contained Li2O (kt) |
Tonnes (Mt) |
Li2O% Grade |
Contained Li2O (kt) |
|
|
Sogola_Baoule |
8.4 |
1.09 |
91.9 |
3.8 |
1.13 |
42.8 |
12.2 |
1.10 |
134.8 |
|
Ngoualana |
3.1 |
1.25 |
39.2 |
2.0 |
1.12 |
22.1 |
5.1 |
1.20 |
61.3 |
|
Boumou |
|
|
|
4.0 |
1.02 |
40.4 |
4.0 |
1.02 |
40.4 |
|
TOTAL |
11.6 |
1.13 |
131.2 |
9.7 |
1.08 |
105.3 |
21.3 |
1.11 |
236.5 |
Notes: Mineral resources are reported using a 0.5%Li2O cut-off. Figures may not sum due to rounding. The contained metal is determined by the estimated tonnage and grade.
The Bougouni Project and recently acquired 200km2 Bougouni West project are located in an emerging lithium province that is already attracting the attention of investors and off-take partners interested in securing a long-term supply of lithium. With the support of its strategic investor and off-take partner Suay Chin International Pte, a Singapore-based lithium and chemical trader, Kodal Minerals is well positioned to continue its ambitious development programme at Bougouni.
Further to this, Kodal Minerals is the manager of additional lithium and gold projects that are undergoing low cost exploration programmes in addition to JV funded gold properties in Cote d'Ivoire that offer potentially significant long-term value.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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