Kodal Minerals Targets Ghana Lithium Discovery to Expand Beyond Mali Mine

Kodal Minerals is expanding its lithium exploration activities in West Africa, targeting a potential new discovery in Ghana as recovering lithium prices improve the outlook for battery metals.

The company has signed a binding agreement with GH Geo-Consult Ltd to earn up to an 80% interest in the Asamankese lithium project in Ghana’s Eastern Region. Kodal has acquired an initial 10% stake for $300,000 and plans to invest at least $13 million in exploration over five years.

Chief executive Bernard Aylward said Kodal’s long operating history in West Africa gives it experience working with local communities, authorities and regional mining regulations. The company has operated in the region for nearly two decades.

The 156-square-kilometre Asamankese project has shown early geological potential, with rock-chip samples returning lithium oxide grades of up to 3.02% at the Amantra and Nfranta prospects. Kodal believes the pegmatite formations warrant further investigation and has identified similarities with geological results recorded during the early exploration stages of its Bougouni project in Mali.

Kodal is refining exploration targets ahead of reconnaissance diamond drilling. The results will help determine the scope and pace of subsequent exploration and investment.

The company’s expansion follows the start of production at its Bougouni lithium mine in Mali in 2025, operated through a joint venture with China’s Hainan. Kodal also holds gold exploration assets in Mali and Ivory Coast, providing an established regional presence as it seeks to grow its battery metals portfolio.

Aylward said the company intends to fund the Ghana exploration programme through existing cash reserves and operating cash flow from Bougouni, rather than raising additional equity.

The move comes as lithium prices recover following a prolonged downturn that delayed mine development projects worldwide, including Ghana’s flagship Ewoyaa lithium project. Demand from electric vehicles, energy storage systems and consumer electronics continues to support the metal’s long-term outlook.

Ghana and other West African countries are seeking to attract investment into critical minerals as governments look to diversify mining industries traditionally dominated by gold and capture more value from growing demand for battery materials.

However, security remains a concern in parts of the region. Islamist militant activity has expanded across some central West African mining areas, creating risks for workers, operations and investment. Kodal has experienced security challenges at Bougouni, where a guard was killed in an armed attack last year.

Despite these risks, the region’s underexplored mineral deposits continue to attract companies seeking new sources of lithium and other critical minerals.