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LONDON - Kodal Minerals PLC (AIM:LON:KOD), a mining exploration and development company, has obtained a loan facility of up to $15 million from Hong Kong Xinmao Investment Co., Limited, a subsidiary of Hainan Mining Co., Ltd. The loan is intended to support the company’s Bougouni Lithium Project in Southern Mali.
The initial advance of $7.5 million from the loan facility has already been received by Kodal’s subsidiary, Kodal Mining UK Limited (KMUK), and was used to complete the final payment under a memorandum of understanding with the State of Mali, announced on November 1, 2024. The loan carries a term of 10 months with an interest rate of 15% per annum.
At the Bougouni site, the company is advancing the ramp-up of its dense media separation (DMS) processing plant, which has produced over 20,000 tonnes of spodumene concentrate so far. The team is working on operational adjustments to improve performance and reach the plant’s full capacity. Open-pit mining is progressing ahead of schedule to build stockpiles before the wet season and the plant achieving steady-state production.
Kodal’s CEO Bernard Aylward stated that the loan is a prudent step to ensure the continuity of operations and the commencement of product export. With no other debt and funds on account, the company expects to repay the loan with revenue from the sale of spodumene concentrate, which is anticipated to exceed the loan amount.
The company is also engaged in discussions with the Mali Government to finalize export permitting, which is the last requirement for starting sales of spodumene concentrate. Aylward expressed confidence in reaching the plant’s nameplate capacity in the upcoming quarter and entering steady-state production.
Additional drawdowns from the loan facility are available upon meeting specific conditions, including the submission of a written request and entering into an offtake agreement with an affiliate or nominee of the lender. Kodal is actively pursuing offtake discussions, and updates will be provided as they become available.
This financial update is based on a press release statement issued by Kodal Minerals PLC.
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