Kodal Minerals secures rights to explore concessions adjacent to Goulamina site

Exploration and development outfit Kodal Minerals will acquire two new concessions within 25km of its Bougouni lithium project in Southern Mali.

Kodal inked an agreement with local Malian company Bambara Resources on Wednesday which gives it exclusive rights to explore two new concessions totalling 200km2 immediately adjacent to the Goulamina lithium project owned by Birimian.

The AIM-listed miner will now undertake a rapid exploration programme to take advantage of the low-cost entry into the "highly prospective" new concessions using its "existing proven geological team and infrastructure".

Kodal revealed the Agreement granted rights to acquire 80% of the concessions via option payments totalling £185,000 in cash and £195,000 in shares over three stages and also gave it the option to move to 100% ownership through an additional payment of £500,000 in cash and the granting of a 2% royalty to Bambara.

Chief executive Bernard Aylward said: "While our primary focus continues to be the development of our Bougouni Lithium Project, this new option agreement is a fantastic opportunity for Kodal to expand in this highly prospective region.

As of 1330 GMT, Kodal shares had climbed 5.14% to 0.19p.