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Shares of lithium mining and exploration company Kodal Minerals PLC (LON: KOD) surged 37.5% after the company announced that the Malian government had approved its lodged feasibility study for the Bougouni lithium project.
The approval marks a significant milestone for the company in being granted a mining license for the project. The miner’s feasibility study was approved at a government committee meeting attended by its representatives.
Kodal will now update its license application to meet the requirements set out in Mali’s new Mining Code 2019, after which it will file the updated application and wait for a formal notification to pay the mining license fee of 100,000,000 XOF (approximately £135,000).
Investors cheered today’s announcement given that the company’s Bougouni mining license application has been pending for several years now, and it was not clear whether the firm would be granted the license.
Kodal will start exploiting the high potential resource Bougouni lithium project unlocking significant revenues for the company once the mining operation kicks into full gear.
The firm is well-positioned to benefit from the rising demand for lithium in the global markets amid a shift towards electric vehicles that need lithium-powered batteries and other electrical appliances.
Today’s rally signifies that investors are ready to invest in Kodal Minerals once it receives the actual mining license to start mining operations.
I had covered Kodal Minerals before and highlighted the risks associated with its Bougouni license application, given that governments have been known to move in different directions on such critical national projects.
The long delays were also not helping the company’s case, which is why today’s announcement is such an important milestone.
Kodal Minerals share price.
Kodal Minerals shares surged 37.5% to trade at 0.165p, rising from Friday’s closing price of 0.120p.
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