Leo Lithium Goulamina

Leo Lithium on the hunt to expand mineral concessions footprint in Mali

Leo Lithium (ASX:LLL) has entered into a binding agreement with unlisted company Bambara Resources and Kodal Minerals (LON:KOD) to acquire 2 mineral concessions in Mali.

The company reports it will acquire 100% of the Mafele West and Nkemene West concessions through its 50% owned joint venture (JV) company shared with Chinese company Ganfeng Lithium (SHE:002460), Goulamina JVCo for a consideration of £2.5 million and a 2% gross royalty.

The 2 concessions are owned by Bambara as part of its Bougouni Lithium Project. In 2019 Kodal was granted exclusive access rights for mineral exploration activities and an option to acquire an 80% legal and beneficial interest in the concessions

Under the agreement, in the event of an economic mineral discovery on the area of the concessions and that discovery is supported by a Bankable Feasibility Study (BFS), then on the granting of a mineral exploration licence over the area, the vendors (Bambara and Kodal) will have the right to be issued an equity carried interest level of 15% for no initial consideration.

Leo map

The Goulamina JVCo has no obligation to expend a minimum of $250,000 over 2 years on mineral exploration activities on the concessions. Leo reports limited exploration has been conducted on the concessions to date, and also notes a recent site inspection by its geologists observed pegmatite boulders on the surface.

Commenting on the agreements, Leo Lithium Managing Director, Simon Hay says: “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.

“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 two expansion. 

Our initial plans for the concessions are to sterilise drill areas needed for near-term 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.”

Leo reports all parties have reached agreement of all terms and notes a binding agreement has been signed for the Mafele West concession that has been recently renewed. The process to transfer Mafele West from Bambara to the Goulamina JVCo will begin immediately and is expected to take a number of weeks.

Meanwhile the final binding agreement for Nkemene West will be executed when the renewal documentation for the concession is received. Currently, the company says the renewal has been accepted by the Direction Nationale de la Géologie et des Mines (DNGM) of Mail, and was recommended renewal with the final documents at the Mali Minister of Mines office pending signature.

The company says the Nkemene West agreement will be executed and the transfer will begin when the renewal is received.

Leo Lithium is an ASX-listed pure play lithium company focused on developing the Goulamina Lithium Project in Mali. The company says Goulamina will be the first hard rock lithium project in West Africa when it enters production in the first half of 2024.

Images: Leo Lithium Ltd
Written By Harry Mulholland
Hailing from the Central Coast region of NSW, Harry is a passionate journalist with a background in print, radio and ESG news. When not bashing away on his keyboard, he can be found brewing a coffee or playing with his dog.