Kodal buys 10% of Ghana lithium project for $300,000

Kodal Minerals paid $300,000 for an initial 10% of the Asamankese lithium project in Ghana's Eastern Region under a binding earn-in agreement with GH Geo-Consult.

The London-listed junior (LON: KOD) can raise that to 80% by spending at least $13 million on exploration over five years, Mining.com reported on Oct. 23. The structure caps committed capital at the $300,000 already paid; any further spending depends on the five-year programme.

For existing holders, chief executive Bernard Aylward said the programme will be funded from Bougouni's existing cash and operating cash flow, not fresh equity. The Mali lithium mine began production in 2025. If that holds, the $13 million is a five-year claim on mine cash flow, not an immediate dilution event.

Early work has turned up pegmatite formations, with rock-chip samples grading up to 3.02% lithium oxide at the Amantra and Nfranta prospects, according to the report. Kodal said it is refining targets. The company sees similarities between those early results and Bougouni's initial exploration stage, but that is an analogy to a producing mine, not a resource estimate for Asamankese.

Security remains a concern for miners in parts of West Africa, with Islamist militants expanding their operations there, the report said.

The next hard data point is the reconnaissance diamond drilling Kodal said it was preparing. Until then, the rock-chip grades are surface samples from a 156 sq km property; the drilling that would test them at depth is still ahead.