Kodal Minerals (LON: KOD) is looking to expand its lithium business beyond its producing Bougouni mine in Mali, targeting a new discovery in Ghana as recovering prices improve the outlook for the battery metal.
The miner signed a binding agreement this week with GH Geo-Consult Ltd to earn up to an 80% interest in the Asamankese lithium project in Ghana’s Eastern Region. Kodal acquired an initial 10% stake for $300,000 and plans to invest at least $13 million over five years in exploration of the 156-sq.-km greenfield property.
“We understand the legislation, we understand how to work with local communities and authorities, and we believe the geological potential is very strong,” CEO Bernard Aylward told Reuters, referring to West Africa, where Kodal has operated for nearly two decades.
The expansion comes as West Africa, one of the world’s leading gold-producing regions, seeks to attract more investment in critical minerals. Governments are looking to diversify their mining sectors and capture greater economic benefits from growing demand for lithium and other battery materials.
Kodal’s Bougouni lithium mine, a joint venture with China’s Hainan, began production in 2025. The company also holds gold exploration assets in Mali and Ivory Coast, giving it an established regional presence as it pursues opportunities in battery metals.
Ghana exploration
Early exploration at Asamankese has identified promising pegmatite formations, with rock-chip samples returning grades of up to 3.02% lithium oxide (Li₂O) at the Amantra and Nfranta prospects.
The company sees similarities between the property’s early geological results and those recorded during the initial exploration stages at Bougouni, raising hopes that Ghana could host another significant lithium discovery.
“Asamankese represents a strategic expansion of Kodal’s lithium footprint in West Africa and provides an exciting new growth opportunity in Ghana,” Aylward said in a company statement.
Kodal is refining exploration targets ahead of reconnaissance diamond drilling at Asamankese, with the results guiding the scope and pace of further investment.
Aylward said the company intends to finance the work through existing cash reserves and operating cash flow from Bougouni rather than raising fresh equity.
The strategy comes as recovering lithium prices revive interest in new mine development following a prolonged downturn that delayed projects across the industry, including Ghana’s flagship Ewoyaa lithium project.
Aylward said demand from electric vehicles, energy storage systems and consumer electronics continues to underpin the long-term outlook for the metal.
Regional risks
Despite the geological potential, security remains a concern for mining companies operating in parts of West Africa.
Islamist militants have expanded their operations across central West Africa’s mining regions, challenging government control and raising concerns about the safety of personnel and investments.
Kodal has faced security challenges at Bougouni, where a guard was killed in an armed attack.
The risks have not deterred mining companies from pursuing opportunities in the region, where established gold operations and under-explored critical mineral deposits continue to attract investment.