Kodal Minerals (LON: KOD) has successfully transferred the Foulaboula exploitation permit —a key mining licence for its Bougouni lithium project in Mali — to its subsidiary, Les Mines de Lithium de Bougouni (LMLB).

The move secures the permit’s validity and clears the way for final export approvals for spodumene concentrate, expected to begin next quarter. It also resolves compliance issues around Malian government participation, as required by the country’s new mining framework.

LMLB is 65% owned by Kodal Mining UK (KMUK), a joint venture between Kodal Minerals (49%) and China’s Hainan Mining (51%). The remaining 35% stake is held by the Malian government.

Shares in Kodal rose 3.7% to 0.39p in mid-afternoon London trading, pushing its market cap to nearly £80 million ($106 million).

Bougouni is on track to become Mali’s second operational lithium mine, following Ganfeng Lithium’s first spodumene production at the Goulamina project in December.

Kodal chief executive officer, Bernard Aylward, said earlier this month the company was confident it would meet its production target of 11,000 tonnes of spodumene concentrate per month.

Located 170 kilometres south of Bamako, Bougouni sits in a mining-rich region that includes Hummingbird Resources’ Yanfolila gold mine and B2Gold’s Fekola operation.

Mali’s military government has tightened control over the mining sector since seizing power, introducing a new mining code in August 2023. The law increases the state’s share of mining revenues and scraps tax exemptions for mining firms.

The junta has proved aggressive in implementing the new rules, souring relations with major investors, including Barrick Gold, Resolute Mining and B2Gold.