Kodal Minerals inked an agreement Wednesday granting it exclusive rights to expand its operations in Southern Mali.
The agreement was negotiated on attractive terms, granting Kodal the right to 200km of lithium exploration concessions in the Bougouni lithium province.
It could also potentially lead to the discovery of new zones of lithium mineralisation that would 'complement our existing project and further enhance our long-term position in this region,' the company said.
Under the agreement, Kodal the right to acquire 80% of the concessions through option payments totalling £185,000 in cash and £195,000 in Kodal shares over three stages.
It also included an option for the company to apply for a mining licence, to move to 100% ownership through an additional payment of £500,000 in cash and the granting of a 2% royalty to local Malian company Bambara.
The new project area was close to the existing Bougouni Project and would be explored using Kodal's existing proven geological team and infrastructure, the company added.
' These new concessions are immediately adjacent to the Goulamina Project, owned by ASX listed explorer Birimian Limited, where a Mineral Resource of 103Mt at 1.34%Li2O has been defined. Kodal is focusing its initial review and targeting on interpreted extensions of the Goulamina structure and parallel positions in a similar geological setting,' said Bernard Aylward, CEO of Kodal Minerals.
At 10:01am: (LON:KOD) Kodal Minerals share price was +0.01p at 0.19p