(Sharecast News) - Kodal Minerals announced an amendment to its agreement with Suay Chin International on Tuesday, terminating the right of first refusal over 80% of the spodumene product from the Bougouni Lithium Project in Southern Mali.
The AIM-traded firm said under the amended deal, the termination fee of $14m payable to Suay Chin by Kodal Mining UK would now be paid in three instalments.
It said the first instalment of $3.5m had been paid, triggering the termination of the right of first refusal and associated term sheet.
The second instalment of $3.5m was due within 10 business days of the signing of an offtake agreement between Kodal Minerals UK and Hainan Mining, as approved by Kodal Minerals.
It said the final instalment of $7m would be paid within 10 business days of the first shipment of spodumene concentrate from the Bougouni Lithium Project, or by 31 October, whichever was earlier.
All other terms and conditions of the agreement remained unchanged and were aligned with the Kodal Minerals UK funding package announced on 19 January.
Kodal and its UK subsidiary weer in ongoing negotiations with Hainan to finalise an offtake agreement for 100% of the spodumene product from the Bougouni Lithium Project.
That would be based on market prices for spodumene and will require express written approval from Kodal Minerals as a shareholder of Kodal Minerals UK.
Initially, the offtake deal with Hainan would cover spodumene production from the stage one dense media separation (DMS) processing plant.
At 1544 BST, shares in Kodal Minerals were up 4.32% at 0.46p.
Reporting by Josh White for Sharecast.com.
Kodal Minerals (KOD)