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(Sharecast News) - Mineral exploration and development company Kodal Minerals has signed a memorandum of understanding with ASX-listed Mali Lithium, it announced on Wednesday.
The AIM-traded firm said the company was looking to develop the Goulaminia Lithium Project, located near Kodal's Bougouni Lithium Project in southern Mali.
It said the MoU was for general cooperation and the "investigation of synergies" in the development of the two projects.
Kodal said the two companies recognised the potential to improve the development of each project through the sharing of certain infrastructure and operational support, and under the MoU would review a number of key areas for cooperation.
Those key areas included sharing facilities in the closest town of Bougouni during pre-development, where both firms currently had separate facilities to support exploration and fieldwork, as well as the establishment of common workshop, servicing, storage and catering facilities.
It would also see the establishment of common supply chains for spares, reagents, fuel and other consumables, as well as a joint strategy for transport and shipping and a joint approach to community development.
In addition to exploring operating synergies, the two companies said they intended to negotiate an access agreement for the N'Kemene Ouest and Mafele Ouest concessions, together the Bougouni West Project, that were owned by Kodal Minerals via the Bamabara option agreement.
"Following the completion of our Feasibility Study and the lodging of our mining licence application for the Bougouni Lithium Project, Kodal Minerals is continuing to work on optimising and improving its development," said chief executive officer Bernard Aylward.
"Kodal Minerals recognises that the potential synergies of development with Mali Lithium can have significant beneficial effect on the development capital required as well as ongoing operating expenses throughout the life of mine."
Aylward said the two companies were operating in the same region of Mali, and intended to develop similar lithium mining operations.
"It makes strong sense for the companies to work together where possible to improve the operations and financial return on the projects."
At 1527 GMT, shares in Kodal Minerals were up 53.05% at 0.07p.
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