In an update on a funding package agreed with Hainan Mining, mineral exploration and development company Kodal Minerals said Hainan has now received all necessary approvals from the Chinese government authorities to allow it to complete its funding and investment, as set out in the Hainan funding agreement, which was first announced on January 19.

The funding package will provide full financing for the development and start of production at the company’s Bougouni lithium project, in Mali, and support a major exploration and development programme.

Hainan has informed Kodal that it has the approvals, which include overseas project investment filing certificates from the Hainan Province National Development and Reform Commission and a company overseas investment certificate from the Hainan Province Department of Commerce.

Kodal said on April 13 that it was working to complete a number of conditions precedent for closing in relation to the Hainan funding agreement, which included the reorganisation of Kodal’s subsidiary companies to have all its Mali lithium assets held within Kodal Mining UK, including the Bougouni lithium project.

“The receipt by Hainan of these approvals from the Chinese government authorities to allow Hainan to complete its investment into the development of the Bougouni lithium project is a major step towards completing the transaction,” Kodal CEO Bernard Aylward said.

He added that Kodal was continuing to finalise the conditions precedent for the transaction and expected to achieve the deadline date of April 30 for completion.

“The Kodal technical team is currently in Hainan province visiting the executives and technical specialists of Hainan Mining.  We will also be taking the Hainan team to Mali to introduce them formally to the Mali government officials and to conduct site visits, and undertake further discussions relating to the development of Bougouni.

“Kodal and Hainan remain committed to moving quickly into construction once the financing transaction is complete and all funds received,” Aylward said.