Kodal Minerals (AIM:KOD) has signed an MOU with Mali Lithium Limited (MLL) to explore mining synergies to develop their respective projects in Southern Mali.
The mineral exploration firm told investors that it was looking to further develop its Bougouni Lithium Project which is located near MLL’s Goulaminia Lithium Project.
The statement noted that both parties recognise the potential to improve each project through the sharing of infrastructure and operational support under an MOU.
“It makes strong sense for the companies to work together where possible to improve the operations and financial return on the projects,” said Bernard Aylward, CEO of Kodal Minerals.
Specifically, the MOU will review key areas of cooperation and will enable both companies to share pre-development facilities in the close town of Bouguoni, where the two currently hold separate facilities.
Shares in Kodal Minerals were trading 52.63% higher at 0.0725p on Wednesday morning.
The MOU will establish a common workshop, servicing, storage and catering facilities, a common supply chain for consumables, as well as a joint strategy for transport, shipping and community development, the statement outlined.
Aylward said the group believes the MOU would have a “significant beneficial effect” on the development capital required as well as ongoing operating expenses throughout the life of mine.
Meanwhile, Kodal has said it intends to negotiate an agreement for the N'Kemene Ouest and Mafele Ouest concessions which the group owns via the Bamabara option agreement.
On Monday, the company reported findings from its feasibility study for the Bougouni Lithium project.
The study proposed the project as showing a 8.5-year mine life to produce an average 220,000 tonnes of 6% spodumene concentrate per year.
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