Lindian Resources Ltd (ASX:LIN, OTC:LINIF) has moved to full ownership of the Kangankunde Rare Earths Project in Malawi after paying the final US$10 million tranche under its Share Sale Agreement to acquire Rift Valley Resource Developments Limited (RVRD).
The payment increases Lindian’s stake in RVRD from 67% to 100%, delivering full legal and beneficial ownership of the Malawian company and giving Lindian 100% direct control of Kangankunde, described as one of the world’s largest and highest-grade rare earth deposits currently under development.
Before completing the transaction, Lindian finalised customary legal, tax and accounting due diligence processes to ensure a smooth transfer of ownership and compliance with all obligations.
The final US$10 million tranche was originally due upon commencement of commercial production at Kangankunde or by the end of July 2026. Lindian held the right, but not the obligation, to pay this amount earlier, a right it has now exercised to secure full ownership ahead of schedule.
Transaction background
Lindian entered into a binding Share Sale Agreement in August 2022 to acquire RVRD for total consideration of US$30 million, payable in 4 tranches over 48 months:
- Tranche 1: US$2.5 million non-refundable deposit (paid August 2022)
- Tranche 2: US$7.5 million (paid September 2022 following shareholder approval)
- Tranche 3: US$10 million (paid July 2023, increasing Lindian’s holding to 67%)
- Tranche 4: US$10 million (originally due upon commercial production or by July 31, 2026; now paid early)
With the final tranche now settled, Lindian has completed the acquisition and holds 100% ownership and control of both RVRD and the Kangankunde Rare Earths Project.
Lindian secures $5M underwriting agreement for remaining listed options
Lindian has also entered into an underwriting agreement with Petra Capital Pty Ltd over its remaining listed options, covering up to A$5 million in potential gross proceeds from about 17.8 million unexercised options with a A$0.30 exercise price, due to expire on December 9, 2025.
Read more: $5 million options underwriting to support Kangankunde Rare Earths development
The arrangement provides a pathway for supportive institutional investors to lift their holdings at what Lindian describes as a key stage in its development and is viewed by the board as a signal of market support for the company and its asset base.