Lindian Resources Ltd (ASX:LIN) is poised to start drilling at the Lushoto Bauxite Project in Tanzania.
The company has secured a 12 month $500,000 loan facility to fund the program at the Magambe deposit.
This was one of the key aims when the binding heads of agreement was negotiated in August 2017.
Possible forerunner to progressing to the definitive feasibility stage
The agreement provides Lindian with the option to take a 75% stake in the project should it progress through to the definitive feasibility study stage each would require a further investment of $1.4 million.
Lindian will be targeting high grade zones identified during trenching and sampling activities which saw the project expand to 9 deposits with one deposit returning high-grade levels of available alumina averaging 54%.
Financial terms altered slightly
With regard to consideration for the farm-in agreement which was negotiated with Batan Australia Pty Ltd last year, the timing of the equity component of $200,000 to be issued to the vendors has changed.
This will now be issued after the current prospecting right applications have been processed into issued prospecting rights.