RE: RNS11 Feb 2021 08:55
Kodal Minerals PLC
01 September 2020
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR")
Kodal Minerals Plc / Index: AIM / Epic: KOD / Sector: Mining
1 September 2020
Kodal Minerals plc ("Kodal Minerals" or the "Company")
Kodal Minerals Signs MoU with Sinohydro to Review Engineering, Development and Financing of Bougouni Lithium Project
Kodal Minerals, the mineral exploration and development company focused on its Bougouni Lithium Project (the "Bougouni Project" or the "Project") in southern Mali, is pleased to announce it has signed a Memorandum of Understanding (the "MoU") with Sinohydro Corporation Limited ("Sinohydro"), a specialist engineering, infrastructure, power developer and construction contractor, to work together to develop the Bougouni Project.
Sinohydro is a subsidiary of PowerChina, a Chinese state-owned enterprise and a Fortune Global 500 Company with a US$67bn turnover, which is a leading international engineering and construction company providing integrated services across a range of renewable energy and infrastructure areas.
Sinohydro has undertaken a number of large and high-profile engineering and construction projects in Mali and continues to be active in large Government infrastructure projects and private commercial developments. Further details of Sinohydro's developments are provided below. Importantly for the Company's Bougouni Project, Sinohydro is currently active in the Bougouni region. It has undertaken a site visit to the Bougouni Project with a number of its technical team, looking at the geology, engineering, logistics and corporate aspects of the Bougouni Project, in addition to having access to the feasibility study dataroom, and has provided initial feedback on the high quality of the work undertaken to date, and the development potential.
The focus of the MoU is for Kodal Minerals and Sinohydro to work together to develop the Bougouni Project. The key objectives are:
· Sinohydro will conduct at its own expense a review of the development proposed for the Bougouni Project and provide input in particular on procurement and civil engineering aspects of the feasibility study;
· Sinohydro will review the financing requirements for the Project and, subject to satisfactory review, assist in sourcing financing for the Project. Sinohydro acknowledges the experience of, and will work with, the Company's largest shareholder, Suay Chin International Pte Ltd, and in turn Shandong Ruifu Lithium Industry Co Ltd, which operates a lithium carbonate and lithium hydroxide production plant in Tai'An, China and is expected to be an end user of the spodumene product produced by the Bougouni Project;
· Following completion of the feasibility review and development plan and demonstration of project financing, Kodal
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