PERTH (miningweekly.com) – ASX-listed Lindian Resources has inked its maiden sales and purchase contract with global commodities trader Gerald Metals.
Under the terms of the agreement, Lindian will supply 45 000 t/y of monzanite concentrate from the Stage 1 development of the Kangankunde rare earths project in Malawi. The contract will run for a period of 60 months from the start of commercial production, and could be extended by a further two years, in 12-month increments.
The monthly and yearly quantities represented around 40% of the monzanite concentrate produced at Kangankunde.
Additionally, Gerald could elect to make a $10-million run-of-mine finance facility available to Lindian.
The terms of the facility would be negotiated separately, and would be subject to financing agreements and a proposed security package over Kangankunde’s mined ore stockpiles.
“I am delighted that the globally recognized metals trading group, Gerald Metals, is partnering with Lindian to facilitate the accelerated development of the world-class Kangankunde rare earths project,” said Lindian executive chairperson Asimwe Kabunga.
“We have been working with Gerald for an extended period on the terms of this sale and purchase contract and the financing facility. They have made multiple visits to site to undertake due diligence on the project and our staged development strategy. As such, we have established a great working relationship over this time and built confidence in them as a trusted partner.
“This maiden sale and purchase contract for monazite concentrate provides one of the key enablers to advance Lindian to producer status by end-2024. This is a major achievement for a project that was effectively acquired in August 2022, just 13 months ago.”