Lindian Resources (ASX:LIN) has completed a second tranche payment to Rift Valley Resources to progressively acquire 100% of the Kangankunde Rare Earths (REE) Project in Malawi.
The company says the tranche two payment of US$7.5 million has now been completed, following the first tranche payment of US$2.5 million in August last year.
Commenting on the payment, Lindian Resources Executive Chairman Asimwe Kabunga says: “We are pleased to have completed this second tranche payment- an important milestone for Lindian. We remain well-funded in the medium term to deliver significant value from the first phase drill program which is producing outstanding assay results.
“We remain well-funded in the medium term to deliver significant value from the first phase drill program which is producing outstanding assay results”
These results, and the fact that Kangankunde has a fully permitted mining licences, is driving increased interest and awareness from domestic and international groups that recognise Kangankunde’s potential as a globally significant, permitted, non-radioactive rare earths project. I am most encouraged by the interest being received from participants in the rare earth industry to assist Lindian’s development of a proposed demonstration plant.”
Also commenting on the tranche payment, Lindian Resources Chief Executive Officer (CEO) Alistair Stephens says Lindian is making progress with its respective mine development works, most notably the phase one drill program, metallurgy work, and initiating early activities for the proposed demonstration plant.
“We will continue reporting a steady stream of assay results from now through to the publishing of our maiden Mineral Resource Estimate (MRE) in the second quarter, and commencing the all-important metallurgical testwork that will confirm recoveries, with preliminary results this quarter.”
Lindian reports the third tranche payment is due by August this year, and the final instalment, which will transfer 100% ownership of the project to the company, is due either by August 2026 or at the date of first commercial production if it occurs first.
The company also notes that drilling, assaying, and metallurgy activities are advancing ‘well’, with preliminary metallurgical testwork results expected this quarter, and a MRE update planned for Q2 2023.
Lindian Resources is an ASX-listed exploration and development company operating a portfolio of projects in West Africa. These projects include the Kangankunde REE Project in Malawi, as well as the Gaoual, Lelouma, and Woula Bauxite projects in Guinea.
Images: Lindian Resources Ltd
