Accra:Kodal Minerals (LON KOD) is set to expand its lithium operations beyond the existing Bougouni mine in Mali, by targeting a new lithium discovery in Ghana. This move comes as lithium prices show signs of recovery, boosting prospects for the battery metal industry.
According to Ghana Web, Kodal Minerals has entered into a binding agreement with GH Geo-Consult Ltd, enabling the company to acquire up to an 80% interest in the Asamankese lithium project located in Ghana’s Eastern Region. Initially, Kodal has acquired a 10% stake for $300,000 and plans to invest a minimum of $13 million over the next five years to explore the 156-square-kilometer greenfield property.
The company sees the Asamankese project as a strategic expansion of its lithium footprint in West Africa, with early exploration revealing promising pegmatite formations. Rock-chip samples at the Amantra and Nfranta prospects have shown lithium oxide grades of up to 3.02%, sparking optimism for a significant discovery akin to the early stages of exploration at Bougouni.
Kodal Minerals' CEO, Bernard Aylward, emphasized the company's understanding of the legislative and community engagement processes in West Africa, where it has operated for nearly two decades. He highlighted the region’s potential, as West Africa strives to diversify its mining sector beyond gold to critical minerals like lithium, which are in high demand for electric vehicles, energy storage, and consumer electronics.
Despite security concerns in parts of West Africa, where Islamist militants pose challenges, Kodal continues to pursue regional opportunities. The company plans to fund its exploration activities at Asamankese through existing cash reserves and cash flow from Bougouni, without resorting to new equity raises.
Kodal's strategy aligns with the broader trend of renewed interest in lithium projects, following a period of industry downturns that delayed developments such as Ghana’s flagship Ewoyaa lithium project. The company remains focused on refining exploration targets and preparing for reconnaissance diamond drilling, which will inform further investment decisions.