UK Politics

Kodal Minerals to co-operate with Mali Lithium as they both advance separate mine projects

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Kodal Minerals PLC (LON:KOD) has inked an agreement with Mali Lithium Limited (ASX:MLL) which is developing the Goulaminia project, located close to the AIM-firms Bougouni property.

A memorandum of understanding envisages a “general cooperation and investigation of synergies” for the respective projects, Kodal told investors.

Specifically, Kodal noted that the two companies recognise the potential to improve each project through the sharing of infrastructure and operational support.

Via the MOU, the companies intend to co-operate with the sharing of pre-development facilities in the town of Bouguoni (where they presently have separate offices), the establishment of common workshop, servicing, storage and catering facilities.

READ: Bougouni feasibility study shows IRR of 51%

They will also look at establishing common supply chains for spares, reagents, fuel and other consumables, a joint strategy for transport and shipping, as well as a joint effort in terms of community development.

“Kodal Minerals recognises that the potential synergies of development with MLL can have significant beneficial effect on the development capital required as well as ongoing operating expenses throughout the life of mine,” said Bernard Aylward, Kodal chief executive.

"The two companies are operating in the same region of Mali and intend to develop similar lithium mining operations. It makes strong sense for the companies to work together where possible to improve the operations and financial return on the projects," he added.

Earlier this week, Kodal revealed findings of a completed feasibility study for Bougouni.

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