ASX-listed Leo Lithium has announced that a company owned by Leo Lithium (50%) and Ganfeng Lithium Group (50%) (Goulamina JVCo), has entered into an agreement with Bambara Resources SARL (Bambara) and Kodal Minerals plc (Kodal and collectively the Vendors) to acquire two mineral concessions in Mali for £2.5 million. The concessions (Mafele West and Nkemene West) are located immediately to the south and east of the Goulamina Project and will increase the land area of the Goulamina Project from 101 km2 to 287 km2 .
Bambara is an unlisted company incorporated in Mali and Kodal is listed on AIM (LON:KOD) and is the part owner and developer of the Bougouni Lithium Project in Mali. Bambara owns the two concessions and in 2019 granted Kodal exclusive access rights for mineral exploration activities and an option to acquire an 80% legal and beneficial interest in the concessions.
The Goulamina JVCo will acquire 100% ownership of the concessions for the consideration of £2.5 million and a 2% gross royalty. In the event of an economic mineral discovery on the area of the concessions and that discovery is supported by a bankable feasibility study, then on the granting of a mineral exploitation licence over that area, the Vendors have the right to be issued an equity-carried interest level of 15% for no initial consideration. The Goulamina JVCo has the obligation to expend a minimum of AUD$250,000 over two years on mineral exploration activities on the concessions.
Limited exploration has been conducted on the concessions to date. A recent site inspection by a Leo Lithium geologist observed pegmatite boulders on the surface.
The parties have reached agreement on all terms and a binding agreement has been signed in relation to the Mafele West concession. that has been recently renewed. The process for transfer of the Mafele West concession from Bambara to the Goulamina JVCo will commence immediately, is expected to take a number of weeks and the Company will advise when the transfer is completed. The final binding agreement for the Nkemene Ouest concession will be executed when the renewal documentation for the concession is received. The status of the renewal is that it has been accepted by the DNGM of Mali and recommended for renewal with the final documents at the Mali Minister of Mines office pending signature. The Nkemene Ouest agreement will be executed and the commencement of transfer will commence when the renewal is received.
Leo Lithium’s Managing Director, Simon Hay, commented: “We are pleased to have acquired these concessions. The Goulamina Project has a 23-year mine life and this is likely to grow due to the very large increase in the Danaya resource announced on 17 January 2023. This increased land holding will enable the Goulamina JVCo to optimise the location of infrastructure and mining stockpiles over the long term and this will be especially useful for our Stage 2 expansion. Our initial plans for the concessions are to sterilise drill areas needed for near-term Leo Lithium Limited ABN: 70 638 065 068 T +61 8 6149 6121 E info@leolithium.com W leolithium.com Level 2 16 Ventnor Avenue West Perth WA 6005 Australia ASX: LLL 2 infrastructure and stockpiling and then to develop an exploration program for the remaining area, to be implemented in future years. The concessions have had scant exploration to date and the Goulamina area has shown to be very prospective for lithium mineralisation.”