Lindian completes 100% acquisition of Kangankunde rare earths project

Australia-based Lindian Resources has paid the last $10m (A$15.05m) tranche nether a stock merchantability statement to get Rift Valley Resource Developments (RVRD), the Malawian institution that owns 100% of the Kangankunde uncommon earths project.

Located successful Malawi, the Kangankunde uncommon earths task is 1 of the world’s largest and highest-grade uncommon world deposits presently successful development.

With this payment, Lindian’s involvement successful RVRD has risen from 67% to 100%, transferring implicit ineligible and beneficial ownership of the task to Lindian and granting the institution nonstop power implicit the Kangankunde project.

Prior to the finalisation of the transaction, Lindian undertook and completed customary legal, taxation and accounting owed diligence to guarantee a creaseless transportation of ownership and compliance with each obligations.

However, Lindian exercised its close to marque the outgo earlier, completing the acquisition up of schedule.

In August 2022, Lindian signed a binding stock merchantability statement to get RVRD for $30m, payable successful 4 tranches implicit 48 months.

The archetypal tranche, a $2.5m non-refundable deposit, was completed successful August 2022, portion the $7.5m 2nd tranche was paid successful September 2022 pursuing shareholder approval.

The 3rd tranche of $10m was completed successful July 2023, expanding Lindian's holding to 67%.

The last $10m tranche, primitively owed by 31 July 2026 oregon upon commercialized production, has present been completed early.

Lindian Resources enforcement president Robert Martin said: "Achieving 100% ownership of Kangankunde marks different important milestone successful Lindian's journey.

“This operation provides wide alignment of our operational entities nether which caller contracts person been secure, and with signifier 1 operation advancing rapidly and signifier 2 studies good nether way, this consolidation provides afloat strategical and operational power arsenic we determination toward archetypal accumulation connected what is 1 of the uncommon world industry's astir important improvement projects."

In August, Lindian secured ceremonial support from the Malawi Mining and Minerals Regulatory Authority to widen its mining licence country for the Kangankunde uncommon earths task from 900 hectares (ha) to 2,500ha.

"Lindian completes 100% acquisition of Kangankunde uncommon earths project" was primitively created and published by Mining Technology, a GlobalData owned brand.

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