Lindian grabs 100 per cent of Guinea tier-1 | Australian Markets

Lindian Resources has executed a binding settlement to grab the remaining 25 per cent share of the Lelouma bauxite project within the West African nation of Guinea, boosting its possession stake to 100 per cent of the tier-1 asset.

It will obtain full possession of Bauxite Holding (previously Sarmin Bauxite Ltd) by buying the remaining 25 per cent curiosity from minority shareholders. Bauxite Holding totally owns the Lelouma project.

After buying 100 per cent of Bauxite Holding, Lindian will assume full control of the spectacular Lelouma project’s planning and development.

The company shall be focusing on direct delivery ore from the present useful resource containing a whopping 900 million tonnes at a grade of 45 per cent aluminium oxide, or alumina, and a pair of.1 per cent silicon dioxide.

The direct delivery ore won’t require processing or upgrading with beneficiation.

Lindian has already significantly superior its discussions with potential port and infrastructure companions to ship the ore.

The useful resource contains a measured and indicated element of 398Mt at 48.1 per cent alumina, which comprises steady high-quality zones exceeding 50 per cent. Additionally, the useful resource has a larger confidence measured useful resource of 155Mt going 47.9 per cent alumina.

The company entered an settlement to accumulate 75 per cent of Sarmin in September 2020, which then held full possession of Lelouma. Under the settlement, the transaction comprised a sequence of milestones for Lindian to fulfill, together with finishing a definitive feasibility examine and an relevant mining concessions grant.

Lindian’s new board lately reviewed all of the company’s property and located it had not met its milestones within the agreed timeframe, which threatened to scale back its stake in Lelouma to five per cent.

Management rapidly began negotiations to buy the steadiness of 25 per cent in Bauxite Holding and be launched from its obligations beneath the unique settlement.

The company secured the 25 per cent share by issuing 20 million shares and a 1 per cent royalty to the distributors. The shares shall be escrowed for six months.

Lindian’s board can be reviewing its asset base in Guinea and Tanzania, and can promote or relinquish non-core property.

The company is happy to have resecured 100 per cent possession of this world class asset, we are able to now invest within the project’s continued development unencumbered by time constraints, multi-million-dollar milestone caveats and minority companions.

Martin stated the company believes the Lelouma project can play a substantial position in assembly an anticipated rising demand for aluminium and its associated merchandise for electric vehicle manufacturing. This market is estimated to succeed in about US$18.5 billion (A$29B) by 2030.

Given Lindian’s dedication to develop its flagship world-class Kangankunde uncommon earths project in Malawi, the company plans to rent a new in-country management staff to drive Lelouma’s development.

The staff shall be laser-focused on Lelouma’s allowing, port and rail entry, product offtake agreements, any authorities concessions obtainable for the project and all authorities relations.

The earlier house owners invested more than $10 million into the project, which is about 100 kilometres northeast of the CBG rail line, which is in flip 100km northeast of Kamsar port. The port exports 25Mt of bauxite per annum.

The company says its Kangankunde uncommon earths project, which sits within the southern half of Malawi bordering Mozambique, is one of the richest uncommon earth initiatives on the planet, with its whopping 55 per cent complete uncommon earth oxides.

The deposit has an ultra-low iron content material and can require much less chemical use to course of, serving to to cut prices and clean the trail by way of environmental approvals.

The Kangankunde deposit additionally has minimal uranium and thorium ranges, which is able to present a huge benefit as European and North American regulators tighten the screws on radioactive thresholds.

Kangankunde comprises a huge 261 million tonnes grading a very good 2.14 per cent complete uncommon earth oxides. The magnet uncommon earths neodymium and praseodymium comprise 20.3 per cent of the project’s complete uncommon earths.

The project has a mammoth 1.1Mt of high-value magnet uncommon earths. Today’s price averaging about US$65,000 (A$101,000) per tonne of neodymium and praseodymium gives an indication of its worth.

Lindian is pursuing a two-pronged strategy for uncommon earths-alumina in Africa and should have picked a profitable project duo to generate the metals needed for future (*100*)-energy necessities.

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