Shares of exploration and development company Kodal Minerals (LON: KOD) have surged Monday morning on the news that it has been granted Mining Licence for its flagship Bougouni Lithium Project in Mali.
The announcement follows on from the company recently telling investors it was now the 100% holder of the project . After the mining grant, the project is now fully ready for development, according to Kodal.
The grant was given to Kodal Minerals' Mali subsidiary company, Future Minerals SARL, and is valid for an initial 12-years, spanning over 97.2 square km.
“Strongly rising prices for spodumene concentrate highlight opportunity for Project development with recent average pricing levels exceeding US$1,250 per tonne 5% Li2O spodumene concentrate, compared with the initial US$680 per tonne for 6% Li2O spodumene concentrate,” said Kodal.
The company has now started a programme to update the feasibility study before securing mine development and construction funding.
The news has seen Kodal shares rise over 20% to 0.431p, after initially touching a high of 0.47p. Today's move puts Kodal shares up over 300% for the year to date, with investors previously buying into the stock in anticipation of today's news.
Bernard Aylward, CEO of Kodal Minerals, said: “The granting of the Mining Licence for Bougouni has come at a great time for Kodal with the increasing global focus on battery metals and the recognition of potential supply deficits highlighting the value of our fully permitted Bougouni Lithium Project.”
Kodal Minerals shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are KOD shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.