UK-listed Kodal Minerals said it has agreed to a conditional funding package of $117.75 million from China-based Hainan Mining to provide full financing for the development and commencement of production at the Bougouni Lithium Project in Mali and support a major exploration and development programme.

In a statement, the West Africa-focused mineral exploration and development company said Hainan Mining will have a 14.81 percent stake in Kodal Minerals and own 51 percent of its subsidiary Kodal Mining UK Ltd, which holds all mining and exploration rights of the Bougouni Lithium Project in southern Mali. 

In addition, the funds will be used to undertake a comprehensive exploration programme on the company’s gold exploration assets in Mali and Cote d’Ivoire, as well as the assessment of new exploration and development opportunities in West Africa. 

Hainan’s wholly owned UK-incorporated subsidiary Xinmao Investment Co is also involved in the funding package.

Liu Mingdong, Chairman of Hainan Mining, said: “This investment in Kodal and Kodal Mining UK Ltd is in line with our strategy of improving the level of resource and feedstock security and commencing the building of our lithium hydroxide supply chain.”

He stated the company aims to jointly develop the Bougouni Lithium Project effectively, aiming to start production and reach full-scale operations as quickly as possible.

(Writing by P Deol; Editing by Anoop Menon)