(Alliance News) - Kodal Minerals PLC on Tuesday said it will pay GBP135,000 to secure a mining licence for its Bougouni lithium project in southern Mali, as the nation remains in political turmoil.
The London-based mineral miner began the application process to develop several open pit lithium mines at the 350 kilometre square site in the first quarter of 2020, according to the company's website.
Kodal Minerals received formal correspondence from the Direction Nationale de la Geologie et des Mines in Bamako, Mali notifying it of acceptance of the feasibility study for the mining licence application at the Bougouni lithium project and requesting payment of an application fee for the delivery of the mining licence. Kodal plans to pay the GBP135,000 fee "promptly".
Chief Executive Officer of Kodal Minerals, Bernard Aylward, said: "Our mining licence application is progressing through the final regulatory stages ... [this] is a very positive development and brings us significantly closer to a fully permitted project."
Once the fee is paid the Direction Nationale de la Geologie et des Mines will draft a mining licence, which will be sent on to the Ministry of Mines, Energy & Water and then to the office of Mali's prime minister to be formally signed.
The political situation in Mali remains unstable as Kodal's application passes through the government. On Monday, military officer Assimi Goita was sworn in as president, and he selected a civilian Choguel Maiga as prime minister, AFP reported.
Goita headed a coup that overthrew the country's democratically elected leader in August 2020 and recently took power once again after the second coup in nine months.
The latest coup has led the African Union and the Economic Community of West African States to suspend Mali and send in its mediator Goodluck Jonathan, former president of Nigeria, who is expected to arrive in Mali on Tuesday.
Kodal Minerals shares were trading up 27% at 0.31 pence each in London on Tuesday morning. The stock has nearly tripled so far in 20201 from 0.11p at the end of 2020.
By Scarlett Butler; scarlettbutler@alliancenews.com
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Kodal Minerals (KOD)