Shares of Kodal Minerals saw a boost after announcing an extension to the deadline for a funding package agreement with Hainan Mining. The deadline has been moved from August 31 to September 30 for the development of the Bougouni lithium project in Mali.
At 0755 GMT, the London-listed miner’s shares were up 0.08 pence, or 19%, at 0.51 pence.
Kodal Minerals stated on Thursday that it has successfully completed most of the necessary steps to restructure its Mali subsidiary entities, which hold the lithium interests. The company also mentioned that it is collaborating with Mali’s government to finalize the remaining compliance requirements needed to fulfill the conditions precedent for the funding transaction.
Back in January, Kodal Minerals had agreed to a funding package with Hainan, including a $100 million investment to acquire 51% of the lithium project company Kodal Mining UK, as well as an additional $17.75 million subscription for new ordinary shares in Kodal.
“Kodal and Hainan are actively working together to finalize the transaction, while also progressing with pre-development tasks that will facilitate a smooth transition to the construction phase once the funding transaction is complete,” stated Chief Executive Bernard Aylward.