Under the terms agreed with exploration and development company Rift Valley Resource Developments to progressively acquire 100% of the Kangankunde rare earths project, in Malawi, ASX-listed Lindian Resources has now completed a second-tranche payment of $7.5-million.
The first-tranche payment of $2.5-million was completed in August last year.
Tranche three is due by August, while tranche four – the final instalment – is due by August 2026 or at the date of first commercial production, whichever comes first. This will ensure that Lindian has sufficient time and optionality to consider financing scenarios.
Lindian also confirmed on January 20 that drilling, assaying and metallurgy activities at Kangankunde are advancing well.
“We are pleased to have completed this second-tranche payment – an important milestone for Lindian. We remain well-funded in the medium term to deliver . . . value from the first phase drill programme, which is producing [good] assay results.
“These results, and the fact that Kangankunde has a fully permitted mining licence, is driving increased interest and awareness from domestic and international groups that recognise Kangankunde’s potential as a globally significant, permitted, non-radioactive rare earths project,” Lindian executive chairperson Asimwe Kabunga said.
Interest from participants in the rare earth industry has escalated in assisting Lindian’s development of a proposed demonstration plant, he added.
Moreover, Kangankunde’s mining licence and environmental approvals will enable the project to be fast-tracked.
The Phase 1 drilling programme is also advancing well, with a steady stream of assays to continue and a maiden mineral resource estimate (MRE) on track for the second quarter of the current year.
In addition, small-scale metallurgical test work is under way in South Africa, with larger-scale testing to begin in Australia shortly, the results of which are on track to be revealed this quarter.
“Lindian is making good progress with its respective mine development works, most notably the Phase 1 drill programme, metallurgy work and initiating early activities for the proposed demonstration plant.
“We will continue reporting a steady stream of assay results from now through to the publishing of our maiden MRE in the second quarter, and commencing the . . . metallurgical test work that will confirm recoveries, with preliminary results this quarter,” Lindian CEO Alistair Stephens added.