(Alliance News) - Kodal Minerals PLC said Wednesday it has signed a memorandum of understanding with Mali Lithium Ltd, for general cooperation and to investigate potential synergies in developing their respective projects.
Shares in Kodal Minerals were 52% higher at 0.072 pence on Wednesday in London.
Kodal Minerals is developing the Bougouni lithium project in southern Mali, while Sydney-listed Mali Lithium is focused on the Goulaminia lithium project located near Bougouni.
Under the memorandum, both companies will review several key areas in which to cooperate, including the establishment of common supply chains and common workshop and storage facilities, as well as joint strategies for transport, shipping and community development.
As well as exploring cooperation opportunities, Kodal and Mali Lithium will negotiate an access agreement for the N'Kemene Ouest and Mafele Ouest concessions, which is owned by Kodal Minerals through 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. Kodal Minerals recognises that the potential synergies of development with MLL can have significant beneficial effect on the development capital required as well as ongoing operating expenses throughout the life of mine," said Chief Executive Officer Bernard Aylward.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Kodal Minerals (KOD)