Kodal Minerals has reached a Memorandum of Understanding (MoU) with Sinohydro Corporation (Sinohydro), to develop the Bougouni lithium project in Mali.
The project is hard-rock, open-pit lithium mine that is planned to be developed near Bougouni in southern Mali.
Sinohydro is an engineering and construction subsidiary of PowerChina, a Chinese state-owned enterprise, providing integrated services in renewable energy and infrastructure areas.
The company has undertaken various large and high-profile engineering and construction projects in Mali, including Kodal’s Bougouni project.
Sinohydro will conduct review of development proposed for the project
Under the terms of the MoU, Sinohydro would carry-out a review of development proposed for the Bougouni Project and provide inputs on procurement and civil engineering aspects of the feasibility study, at its own expense.
The company is expected to review the financing requirements for the project and, help in procuring project financing, subject to satisfactory review.
After the completion of the feasibility review, development plan and demonstration of project financing, Kodal Minerals and Sinohydro are expected negotiate a mutually acceptable EPC contract.
Sinohydro has been granted an initial six-month exclusivity period to review and advise on financing for the Bougouni project and develop an EPC contract proposal.
The project consists of the Kolassokoro and Madina mining concessions that cover total area of approximately 500km2.
Kodal Minerals stated: “Importantly for the Company’s Bougouni Project, Sinohydro is currently active in the Bougouni region.
“It has undertaken a site visit to the Bougouni Project with a number of its technical team, looking at the geology, engineering, logistics and corporate aspects of the Bougouni Project, in addition to having access to the feasibility study dataroom, and has provided initial feedback on the high quality of the work undertaken to date, and the development potential.”
