Aim-listed Kodal Minerals has entered into a binding agreement with Ghanaian mining consultancy GH Geo-Consult Limited (GGCL) in relation to the Asamankese lithium project, in Ghana.

Under the terms of the agreement, Kodal has the right to earn up to an 80% interest in the project through a staged earn-in structure comprising cash payments, exploration expenditure commitments and technical project development milestones over five years.

Kodal CEO Bernard Aylward says Asamankese represents a strategic expansion of Kodal’s lithium footprint in West Africa and provides an exciting new growth opportunity in Ghana.

He explains that exploration, to date, has identified well-developed pegmatite trends at the Amantra and Nfranta prospects, with high-grade rock-chip sampling returning up to 3.02% lithium oxide (Li₂O).

Aylward says the company’s ongoing field programme is focused on refining target zones to guide its upcoming reconnaissance diamond drilling, with the results guiding the next stages of exploration.

“Through the successful development and operation of the Bougouni lithium project, our team have gained deep technical and operational expertise in lithium project development in West Africa.

“We look forward to applying this experience to Asamankese while evaluating the project on its own geological merits. At this stage, our focus is on a systematic exploration programme, with subsequent work and investment guided by the results.”

Kodal has entered the Asamankese project through a newly registered operating company in Ghana, Kodal Lithium Ghana Limited (KLGL), which it owns through its wholly-owned subsidiary Kodal Lithium Exploration Limited (KLEL), which is registered in England.

Kodal and GGCL have established a joint venture company, Asamankese Lithium Ghana with initial shareholdings of 90% to GGCL and 10% to KLGL. Following execution of the agreement, GGCL will apply to the Minerals Commission of Ghana to transfer the Asamankese prospecting licence to Asamankese Lithium Ghana.

Kodal says execution of the formal agreement follows completion of a six-month exclusivity period, which Kodal secured through an initial $50 000 payment, during which Kodal undertook initial field, technical and legal due diligence and secured required regulatory approvals in Ghana.

Under the Agreement, Kodal and GGCL have agreed an earn-in structure that granted KLGL its initial 10% interest in Asamankese for $300 000 (including the initial $50 000 payment for exclusivity) with the right to earn up to 80% ownership from GGCL through staged investment and technical milestones.

Kodal says it has the option to progress to each stage at its sole discretion.

Additionally, Kodal says it has the right at any time to cease further expenditure on the project and will retain any interest in Asamankese earned up to that point.

During the earn-in phase of the agreement, the company explains that KLGL will manage all exploration, technical work programmes, budgets and operational execution.

KLGL has appointed Abdul-Razak Shaih Ballah as country manager in Ghana and is appointing a Ghana-based geological team to work with Kodal’s existing West African exploration team to take full advantage of the teams’ lithium exploration expertise.

Kodal says the Ghana country manager and geological team have all previously worked on the Ewoyaa lithium project and have experience in exploration, development, environmental management and community relations within the Ghanaian mining industry.

Asamankese is a greenfield lithium exploration project in Ghana’s eastern region.

Kodal explains that exploration has defined two immediate prospects for further work.

This includes the Amantra prospect, which is an expansive pegmatite system with coarse to very coarse grained spodumene mineralisation recognised in outcropping rock.

The initial mapping has identified a strike length exceeding 3 km with multiple south-east dipping pegmatite veins. The Amantra prospect is a priority target for follow-up field exploration and definition of drill targets.

Secondly, the Nfranta prospect has been defined as a zone of multiple pegmatite veins extending over a strike length of over 4 km, with interpreted north-west dipping veins that remain open along strike.

Kodal says it has begun field exploration with initial field mapping, reconnaissance rock chip sampling and has started a surface geochemical sampling programme to evaluate the broader Asamankese concession area.

Kodal notes that its initial work confirms the presence of spodumene-bearing pegmatite bodies and initial rock chip sampling confirms high-grade mineralisation.

Kodal has collected 164 rock chip samples, and analysis at the Intertek Mineral laboratory Tarkwa, Ghana, has returned assay results up to a maximum of 2.49% Li₂O, with a total of 95 samples of the initial 164 collected returning assay values exceeding 1% Li₂O.

Kodal is assessing the multi-element geochemistry to assist in determining priority zones for initial drill testing.

Kodal says it has contracted a local drilling company with small diamond drill rigs to allow access to selected areas with minimal site disturbance for the initial drilling programme and expects to begin drilling before the end of this year.