SWS Lawyers forecasts mergers and acquisitions (M&A) deal flow to trend upwards in the mining and resources sector in 2026, with focus on New South Wales, Queensland, and Western Australia.
While deals are expected to be on the uprise for the sector, the firm says market consolidation, cost increases and regulatory pressure are likely to impact M&A this year.
Australian company Lindian Resources (ASX:LIN) has entered a binding term sheet to acquire a mixed rare earths carbonate (MREC) processing facility from a joint venture between Sumitomo Corporation (TYO:8053) and Kazatomprom, Summit Atom Rare Earth Company (SARECO) in Kazakhstan.
The asset acquisition is structured through an incorporated joint venture between Lindian, with a 51% stake, and RA-Group, with the remaining 49%. The joint venture will acquire whole ownership of the MREC Processing Facility, as well as associated infrastructure.
The acquisition has a total purchase price of US$15 million, comprising a US$3 million initial consideration and a US$12 million deferred consideration.
The deferred consideration is due three months after the plant begins efficient operations. The plant is estimated to be commercially producing MREC in the first half of 2027.
Lindian Executive Chairman Robert Martin says acquiring the SARECO processing facility is a “defining step” for the company.
“This transaction positions Lindian to be one of the very few non-Chinese companies globally producing both rare earth concentrate and MREC“
“It fast-tracks our transition from a concentrate producer to an integrated rare earths company with downstream capability, materially enhancing margins, commercial flexibility and long-term strategic value,” Martin says.
“This transaction positions Lindian to be one of the very few non-Chinese companies globally producing both rare earth concentrate and MREC.
“Securing a fully constructed, operational cracking facility for US$15 million, compared to over half a billion dollars typically required for greenfield downstream development, allows Lindian to avoid years of development, construction, permitting and balance sheet risk whilst maintaining our first to market approach.”
Lindian Resources is developing rare earth elements and bauxite assets in Malawi and Guinea.
Patriotism in Peru
Patriot Resources (ASX:PAT) has completed the acquisition of the Tassa Silver-Gold Project in southern Peru, which hosts an inferred resource of 31.4 million ounces silver equivalent @ 52.68 grams per tonne silver equivalent.
The company’s technical and leadership team will conduct a site visit and engage with the local community, ahead of refining targets through surface sampling and mapping.
Patriot will complete a permitting and community agreement with phase one drilling to follow.
Tassa hosts a silver-dominant system with over 25.5 million ounces silver and multiple ‘high-grade’ zones including 60m @ 224.20g/t silver from 24m.
Phase one drilling intends to infill and extend ‘high-grade’ corridors and grow the known resource.
CEO Dominic Duggan says mineralisation at the Tassa Project remains open in all directions across a 2.8km trend, where the company intends to target growth.
“Importantly, Zone S2 stands out as a high-grade zone within the current resource, grading approximately 102g/t silver equivalent,” Duggan says.
“As the highest-grade zone defined to date, and remaining open along strike and at depth, S2 represents a compelling and high-priority target for our phase one drill program. We see clear potential to extend and further define this high-grade mineralisation, with drilling designed to test both lateral and depth extensions.
“Our immediate focus will be on unlocking additional ounces within this emerging high-grade corridor.
“With silver representing the dominant metal within the resource and strong polymetallic credits, Tassa provides Patriot with immediate scale, open pit potential and significant growth leverage.”
Loading up on Tasmania
Lode Resources (ASX:LDR) has acquired exploration licences spanning 155km2 in the West Coast mining district within Tasmania from Mineral Resources Tasmania, expanding the company’s footprint in the state.
The company now holds 250km2 of tenure in Tasmania, adding the Granville Tin Project, as well as the Greater Montezuma Project and the Silver Hills Project, which are both prospective for silver and antimony.
Managing Director Keith Mayes says the licences “materially strengthens” Lode’s footprint by more than 60%.
“Our immediate focus remains on advancing Montezuma toward an inaugural JORC resource in the next few weeks, while progressing Greater Montezuma, Silver Hills and Granville toward drilling this year,” Mayes says.
“With 100% ownership of Tasmania’s only dedicated antimony projects, we are well positioned to capitalise on growing demand for critical minerals, supported by strong infrastructure and a highly prospective geological setting.
“This expanded tenure underpins our strategy to build long-term shareholder value through systematic exploration and resource growth.”
Lode Resources is an Australian exploration company with critical minerals projects in Tasmania and New South Wales.
Write to Maddison Elliott at Mining.com.au
Images: Lode Resources & SchiffGold
