Kodal Minerals PLC has signed a binding agreement with GH Geo-Consult Limited to earn up to an 80 per cent interest in the Asamankese Lithium Project in Ghana's Eastern Region, extending its West African footprint beyond its producing Bougouni operation in Mali.
The 156-square-kilometre project is located approximately 75 kilometres by road from Accra within the Birimian geological sequence. Kodal, in a statement, said it has acquired an initial 10 per cent stake for US$300,000 and can increase its ownership through a staged investment programme over five years.
Historical rock-chip sampling at the project returned grades of up to 3.02 per cent lithium oxide. Kodal's initial sampling has confirmed high-grade spodumene mineralisation with assays up to 2.49 per cent lithium oxide, with 95 of 164 samples returning values exceeding 1.0 per cent.
The company has identified two priority prospects, Amantra and Nfranta. Amantra is an expansive pegmatite system with coarse to very coarse-grained spodumene mineralisation recognised in outcropping rock, with an initial mapped strike length exceeding three kilometres. Nfranta has been defined as a zone of multiple pegmatite veins extending over a strike length of over four kilometres, with interpreted northwest dipping veins that remain open along strike.
Under the agreement, Kodal can progress to each stage at its sole discretion. Stage One is a six-month period allowing field exploration, including drilling, with minimum expenditure and a stage completion payment totalling US$1.25 million, taking its interest to 30 per cent.
Stage Two is a 24-month period with a milestone target of an initial mineral resource estimate following minimum expenditure and a stage completion payment totalling US$4 million, taking its interest to 60 per cent.
Stage Three is a 30-month period with a milestone target of completion of a definitive feasibility study, with Kodal investing minimum expenditure and a stage completion payment totalling US$7.5 million. At completion of Stage Three, Kodal will have an 80 per cent interest, with GH Geo-Consult retaining 20 per cent.
Kodal has the right at any time to cease further expenditure on the project and will retain any interest earned up to that point.
The Chief Executive Officer of Kodal Minerals, Mr Bernard Aylward, said the project represented a strategic expansion of the company's lithium footprint in West Africa and provided an exciting new growth opportunity in Ghana.
"Exploration to date has identified well-developed pegmatite trends at Amantra and Nfranta, with high-grade rock-chip sampling returning up to 3.02% Li₂O. Our ongoing field programme is focused on refining target zones to guide our upcoming reconnaissance diamond drilling, with the results guiding the next stages of exploration," he said.
He said the company's team had gained deep technical and operational expertise in lithium project development in West Africa through the Bougouni Lithium Project.
"We look forward to applying this experience to Asamankese while evaluating the project on its own geological merits. At this stage, our focus is on a systematic exploration programme, with subsequent work and investment guided by the results," he said.
Field exploration is already underway, with a local drilling contractor appointed and initial diamond drilling expected to begin before the end of 2026.
Kodal has appointed Mr Abdul-Razak Shaih Ballah as Country Manager in Ghana and is appointing a Ghana-based geological team with experience in exploration, development, environmental management and community relations within the Ghanaian mining industry.
Kodal Minerals is a West African focused lithium producer, mineral exploration and development company. Its flagship asset is the Bougouni Lithium Project in Southern Mali, developed in partnership with Hainan Mining Company Limited.