LONDON (Alliance News) - Kodal Minerals PLC on Tuesday said it has increased its exposure to the lithium market after signing an agreement to explore and acquire a concession in Southern Mali, prospective for lithium mineralisation.
The mineral exploration and development company, which focuses on West Africa, said it entered into the deal with local Malian company EMAS Mining SA for the Kolassokoro concession, which grants Kodal exclusive rights to explore the concession.
The site comprises of 250 square kilometeres and contains five identified lithium bearing pegmatite veins. The Ngouanala vein and Sogola vein are of "high interest to Kodal", the company said, adding that the key targets already identified are of high priority.
Kodal now has interests covering an area of 500 square kilometres with identified lithium bearing pegmatite veins and geochemical anomalies, it said.
Under the deal, Kodal also has the option to acquire a 90% interest in Kolassokoro by completing payments totaling USD160,000 over four annual states with the initial payment of USD20,000 having been made already to EMAS.
"Kodal has been able to acquire access to identified targets for a very low entry cost, and we will seek to ensure maximum possible expenditure into the ground so we can demonstrate the true value of these projects as quickly and efficiently as possible," said Chief Executive Bernard Aylward.
Shares in Kodal were up 8.8% at 0.185 pence on Tuesday morning.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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Kodal Minerals (KOD)