The Kodal Minerals PLC (LON: KOD) share price plunged by 16.8% after announcing that the long stop date for securing the funding for its Bouguoni lithium mine in Mali had been extended to 31 August 2023 to allow for some pending actions from the Malian government.
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Investors were disappointed to learn that the company could not meet the 30 June 2023 deadline due to certain precedent conditions still to be met in Mali. However, the company is in regular contact with the local Government to satisfy these outstanding condition precedents.
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The political instability in Mali has many worried that implementing the Bouguoni lithium mine might prove challenging as the political upheaval deepens. The UN peacekeeping mission in Mali is set to end on 30 June 2023, and many countries have withdrawn their forces.
Therefore, investors could also be concerned about the safety of Kodal Minerals’ staff working in the country as the military and other armed groups continue fighting. Luckily for Kodal Minerals, the company has been operating in Mali for a few years and has weathered multiple storms during the same period.
Kodal Minerals also revealed that its partners in the project, Hainan Mining Co. Limited and its wholly-owned UK subsidiary Xinmao Investment Co. Limited, still had the relevant Chinese government approvals and were ready to move ahead once the Malian conditions were met.
The outlook for the Bouguoni mine remains optimistic, given that the deadline has been extended by two months. We hope the Malian precedent conditions shall be fulfilled by this time.
Bernard Aylward, Kodal Minerals’ CEO, remarked: “Kodal and Hainan remain firmly committed to completing the transaction and are working together towards the completion of all condition precedents. Kodal has continued to work with Hainan and its team in the review and planning of the proposed development of the Company's Bougouni Lithium Project located in southern Mali and are preparing for the rapid development of the project following completion of the transaction.”
*This is not investment advice.
Kodal Minerals share price.
The Kodal Minerals share price plunged 16.82% to trade at 0.445p, from Thursday’s closing price of 0.535p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.