Lindian Resources (ASX:LIN) has acquired the remaining 49% interest in the SARECO mixed rare earths carbonate (MREC) processing facility in Stepnogorsk, Kazakhstan, taking its ownership to 100%.
The total consideration for the operational hydrometallurgical facility, 15,500m² of additional warehouses, and associated assets comprises up to US$20 million ($28.31 million) in cash to the seller, alongside up to US$22 million in Lindian equity to RA Group.
Meanwhile, the equity component includes US$15 million in fully paid ordinary shares and US$7 million in performance rights at a deemed issue price of $0.775.
SARECO is the only commercial-scale operational mixed rare earths carbonate facility outside China, MP Materials (NYSE:MP), Serra Verde, and Lynas Rare Earths (ASX:LYC).
Executive Chairman Robert Martin says full ownership represents the best outcome for Lindian.
“SARECO gives Lindian a highly capital-efficient pathway into downstream rare earth processing, together with the land and infrastructure to support further expansion over time,” Martin says.
“We have also been particularly encouraged by the strength of inbound interest from customers and strategic counterparties in the United States, Europe, and Japan.”
Executive Director Zac Komur says technical due diligence reinforced the company’s confidence in the condition, capability, and long-term potential of SARECO.
ANSTO testwork in July validated the downstream flowsheet from Kangankunde concentrate through to specification mixed rare earths carbonate, achieving 98% neodymium-praseodymium extraction and 96% total rare earth element extraction.
“The existing cracking, leaching, and precipitation circuits and supporting infrastructure provide a strong platform for MREC production, complemented by [the results of] independent ANSTO testwork,” Komur says.
He adds that Lindian is targeting first processing at SARECO in the December quarter, which aligns with first production at Kangankunde.
“[We are] also evaluating alternative in-country feedstock that could provide additional flexibility around the timing of initial processing.”
Lindian expects to process approximately 12,500 tonnes per annum (tpa) of Kangankunde monazite concentrate through the facility using the validated flowsheet.
The plant has access to low-cost sulphuric acid supply from the adjacent Stepnogorsk Sulphuric Acid Plant, which currently produces 180,000 tpa and is expanding toward 360,000 tpa.
Lindian Resources is an Australian critical minerals producer with rare earths and bauxite assets in Malawi and Guinea.
Write to Paula Fabe at Mining.com.au
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