Proactive Investors - Kodal Minerals PLC (LON:KOD) shares bounced 18.5% off a one-month low to 0.51p after it said an extension had been agreed for the deadline to complete the Bougouni lithium project funding package from Hainan Mining.
Following the pre-payment of US$3.5 million earlier this month, a new deadline of 30 September has been agreed, with the AIM-listed exploration and development company saying it has now completed the majority of items for the restructuring of its Mali subsidiary entities that hold the lithium interests.
A new mining company, Le Mines de Lithium de Bougouni SA (LMLB), has been registered as a 100% owned subsidiary of UK-registered arm Kodal Mining UK Limited (KMUK) and work is continuing with the Mali government to finalise the final compliance items, it said.
Hainan and its own UK arm Xinmao have confirmed that all approvals obtained from the Chinese government remain valid and are ready to complete the transaction as and when the outstanding conditions precedent are satisfied, Kodal added.
Chief executive Bernard Aylward said: "Kodal and Hainan continue to work together to finalise the transaction as well as continuing the pre-development work to allow a rapid transition to the construction phase when the funding transaction is complete."
He said the funds from the pre-payment are being used for engineering design work and metallurgical testing, as well as for the mineral resource update.
Several senior executives from the Hainan and Fosun groups due to be hosted at the site next month, with a meeting held with the new minister of mines for Mali, Professor Amadou Keita, in Bamako this month saw him "express the government's support for the project and all assistance that the Ministry can provide".