Kodal Minerals PLC said on Thursday its funding package with Hainan Mining Co Ltd was approved by the Chinese government.

Kodal is a London-based mineral exploration and development company focused on lithium and gold assets.

Hainan received approval from the Chinese government to fund the exploration and development programme at the Bougoni lithium project in Mali, Kodal said.

The funding package between Kodal and Hainan was announced in January, worth $117.8 million.

Looking ahead, Kodal said it aims to complete closing conditions regarding the Hainan funding agreement, such as the reorganisation of its subsidiaries to have all its Mali lithium assets held within Kodal Mining UK, including Bougoni.

Chief Executive Officer Bernard Aylward said: ‘The receipt by Hainan of these approvals from the China government authorities to allow Hainan to complete its investment into the development of the Bougouni Lithium project is a major step towards completing the transaction. Kodal is continuing to finalise its [conditions precedent for closing] for the transaction and expects to achieve the deadline date of 30 April 2023 for completion. ’

Hainan is a subsidiary of Xinmao Investment Co Ltd.

Kodal shares were up 8.1% at 0.64 pence in London on Thursday morning.

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