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The company noted the recent surge of interest in the lithium industry driven by the focus on green energy

(,) said it will focus for the coming year on its Bougouni lithium project in Mali, while also continuing gold exploration in West Africa.

The AIM-listed company said it was in a solid financial position after a number of fundraisers during the year. These include a £ 0.5million equity financing facility and a US $ 1.5million convertible loan, both of which have been fully converted. In March of this year, Kodal finalized another equity fundraiser totaling £ 3.5million.

Kodal said its mining license application for Bougouni is in the process of final approval and that it expects to receive the license in the near future.

READ: Kodal Minerals says license application for Bougouni lithium project is in final approval stage

The company noted the recent surge in interest in the lithium industry, driven by the focus on green energy.

“Demand for lithium continues to exceed previous forecasts as the use of lithium-ion batteries increases in green energy solutions both at large-scale infrastructure as well as at the personal level via vehicles and personal devices. “said Kodal, noting that the Bougouni project is well positioned to take advantage of this supply gap.

He added that “the sharp rise in the price of lithium spodumene concentrate will support our efforts to secure financing for the development of the Bougouni project”.

During the year, Kodal expanded its portfolio of gold exploration projects with the acquisition of the Fatou gold project in southern Mali, while taking over management and retaining a 100% stake in the Nielle gold concession at northern Côte d’Ivoire. The company said it is currently implementing an exploration program on its gold projects in Mali and Ivory Coast with the aim of rapidly defining new mineral resources that will support the value of these highly promising assets.

WATCH: Kodal Minerals Presents Nielle Project Drill Update with Large High-Grade Gold Mineralization

Announcing its results for the year to March 31, 2021, Kodal said pre-tax losses edged down to £ 623.00 from £ 630,000 the year before.

The company’s exploration and evaluation expenditure on projects fell to £ 542,000 from £ 1.6million, resulting in an increase in the book value of the group’s capitalized exploration and evaluation expenditure to 8 , £ 96million versus £ 8.64million after currency changes. The book value of gold projects in Mali and Ivory Coast was £ 1.47 million and that of lithium projects in Mali was £ 7.48 million at the end of March.

Cash was £ 2.43million at the end of the year and the company’s net asset value was £ 12.63million, compared to £ 8.05million.

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