Kodal to protect Bougouni interests, applies for new licences

JOHANNESBURG (miningweekly.com) – Aim-listed Kodal Minerals has taken action to protect its ownership of relevant interests in the Kolassokoro licence area by filing new applications for two 100 km² licences covering high-priority areas that form part of the Bougouni lithium project, in Mali.

Kodal gained an interest in the Kolassokoro licence area through a 2016 agreement with the registered licence holder EMAS Mining. The agreement provided Kodal with the rights to explore for minerals within the 250 km² licence area, as well as an option to acquire up to a 90% interest in the licence area.

Kodal had recently accelerated payments under the agreement with EMAS to acquire the maximum 90% interest and was in the process of transferring the licence into the name of its wholly-owned Malian subsidiary Future Minerals.

However, while seeking to transfer the licence, Kodal became aware of irregularities in the licence and, following subsequent discussions with the Malian National Directorate of Geology and Mines, Kodal established that the licence may be considered to have expired as a result of EMAS not replying to correspondence sent to it by the directorate, the company noted in a statement on Wednesday.

Further, local company Triumvirat Mining had made an application to the directorate for two new licences within the Kolassokoro licence area.

Kodal has now reached an agreement with Triumvirat, under which the company has withdrawn its applications, and Kodal has filed new applications over the licences covering the high-priority areas within the former Kolassokoro area.

Triumvirat has assisted Kodal in securing applications for the new exploration licences within the former licence area, and which is to be issued in the name of Future Minerals.

If the applications are successful, Kodal will have a 90% interest in these new licences with Triumvirat holding a 10% interest, which will be free carried through to feasibility study.

Kodal will have, therefore, successfully maintained its 90% interest in this ground.

The new licences, if granted, will have an initial life of three years and be eligible for two extensions each, of a further two years.

On award of the licences, Kodal will pay Triumvirat a fee of about £53 000.

The company further seeks to establish with the directorate and EMAS the status of the licences granted to EMAS in the Kolassokoro area that were the subject of the EMAS agreement.

Kodal Minerals, meanwhile, also seeks to determine the status of the EMAS agreement and any future obligations Kodal Minerals and/or EMAS have under it, given the recent developments.

The company maintains its exploration and definition programme at the Bougouni project and remains confident of its rights to the project area.