Kodal announces signing of Bougouni Lithium Project offtake agreement

The offtake agreement is between the local Mali registered mining company Les Mines de Lithium de Bougouni (LMLB) (Kodal Mining UK Ltd (KMUK) in which Kodal has a 49% shareholding) and Hainan Mining Co. Ltd, whereby Hainan will be the exclusive buyer of 100%. of the product produced by the DMS processing plant at the project. The offtake agreement is for a period of four years with an annual review of the quantities to be sold and floor price for the concentrate.

At Bougouni, the DMS processing plant continues to operate well, and technical improvements continue to be made as the DMS processing plant targets nameplate capacity. The DMS processing plant has produced over 40 000 t of spodumene concentrate to date and material is loaded into bags ready for export. The LMLB team continue to work with the Mali Government to finalise requirements for an export licence to facilitate the first sale of spodumene concentrate.

The first phase of the Bougouni project has a 1.4 million tpy beneficiation production line, which is expected to produce 100 000 – 120 000 tpy of lithium concentrate with a yield of more than 5.5% Li₂O.

Bernard Aylward, CEO of Kodal Minerals, remarked:

“This is another important milestone for the development of Bougouni and confirms the conditions and pricing mechanism for the sale of all of the spodumene concentrate produced by the DMS processing plant for the initial four year term of the offtake agreement.

“The offtake agreement sets the price received by LMLB to the SMM published market price with standard adjustments for grade variation. In addition, the payment term of LMLB receiving 95% of the value of the shipment upon loading at the export port provides confidence in the cash flow of the operation in the initial period of export and its move to commercial production at nameplate capacity. The offtake agreement confirms the strong interest of our development partner Hainan in the successful development of Bougouni and we look forward to our first export of product and first shipment to depart from the Abidjan port.

“Discussions continue with the Mali Government to secure the export permit for the spodumene concentrate and the site operations team report that over 40 000 t of spodumene concentrate is currently produced on site and available for export to Hainan.”

Read the article online at: https://www.globalminingreview.com/mining/30062025/kodal-announces-signing-of-bougouni-lithium-project-offtake-agreement/