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The US$117.75 million finance package from Hainan Group will facilitate the development of the Bougouni Lithium Project in Mali through to first production.
European law firm Fieldfisher has advised Kodal Minerals on the agreement of a major conditional funding package of US$117.75 million that will provide full financing for the development and commencement of production at the Bougouni Lithium Project in Mali.The funding package has been agreed with Hainan Mining Co., which is part of the Chinese multinational Fosun International, and Hainan's UK subsidiary, Xinmao Investment Co.
The Hainan Group are highly experienced mining and development professionals and will be working in partnership with Kodal.
The funding package comprises US$100 million committed to Kodal’s UK subsidiary, Kodal Mining UK Limited by the Hainan Group to acquire 51% of KMUK to finance the construction of the Bougouni mine, plus a US$17.75 million equity subscription by Hainan Group into Kodal. Kodal intends to use these funds to further develop the expansion of the Bougouni Lithium Project and to advance the Company's portfolio of gold exploration assets in West Africa.
Kodal were advised by Fieldfisher's sector-leading mining and equity capital markets practices, led by corporate partner and Head of Equity Capital Markets, Brad Isaac.
Commenting on the transaction, Fieldfisher partner Brad Isaac said:
"This is a transformational deal for our client, Kodal Minerals, that will enable the company to take its flagship Bougouni Lithium Project into production, while also conducting further exploration of Kodal's various West African gold assets.
"The size and quality of this deal indicate continued interest in the battery minerals space, while gold development remains an attractive opportunity for strategic investors."
Bernard Aylward, CEO of Kodal Minerals, commented:
“We are very pleased to welcome the Hainan Group as investors into Kodal and as partners for the development of the Bougouni Lithium Project. This investment provides us with a great opportunity to fast track to production of spodumene concentrate in a very strong market."
Brad Isaac was assisted on the transaction by the head of Fieldfisher's mining and metals team, Jonathan Brooks, finance partner Oliver Abel Smith and associates Dana Eyre and Rikin Pabari.