Gold and lithium miner Kodal Minerals has transferred the mining license for the Bougouni Lithium project in Southern Mali from Future Minerals to Mali-registered Les Mines de Lithium de Bougouni (LMLB).
Kodal Mining UK (KMUK), owned by Hainan Group (51%) and Kodal (49%), and the State of Mali signed a binding memorandum of understanding (MoU) to finalise the terms of the licence transfer to LMLB.
The State of Mali and national private investors will hold a combined 35% equity in LMLB, while KMUK retains the remaining 65%.
The initial ten-year licence term comes with a commitment from the State of Mali to renew it as per the mining code in force at the time of renewal.
Additionally, KMUK has agreed to a $15m (£11.6m) cash payment to the State of Mali, with the first instalment due following the MoU signing and the final payment before 31 March 2025.
Kodal Minerals CEO Bernard Aylward said: "The MoU with the State for the transfer of the Bougouni mining licence is the final legal step required as we rapidly progress the construction of the Project, with production on track for the first quarter of 2025.
The transfer of the mining licence to the mining company LMLB confirms the good standing of the Project and provides certainty of State support and ongoing stability of Bougouni. The strong partnership built between Kodal and the State has allowed discussions to be accelerated, culminating with this landmark MoU."
The MoU also includes customs and duties exemptions during the construction phase and ensures the State of Mali will grant all necessary operation and export permits.
The Bougouni Lithium project is fully funded through a $117.5m transaction with Hainan including a $100m investment into KMUK.
The project is poised for development under the updated 2023 Mining Code of Mali.
In 2022, the State of Mali initiated a sector-wide audit, leading to the release of the 2023 Mining Code and the establishment of a commission to negotiate existing mining conventions.
The Implementation Decree for the 2023 Mining Code, finalised in July 2024, clarified economic parameters for mining projects.
