Lindian Resources Ltd (ASX:LIN) has secured a $300,000 short-term loan facility on an arms-length basis from Kabunga Holdings Pty Ltd, a company associated with its chairman Asimwe Kabunga.
The unsecured loan is for a period of two months maturing on December 21, 2021, at a rate of 7% per annum (non-compounding) with interest payable at maturity.
Given Lindian’s low monthly cash burn rate, the facility gives the company the necessary financial flexibility in the coming months to continue advancing its three bauxite projects in Guinea.
Promisingly, interest from third parties, including in-country bauxite mining and aluminium companies as well as traders and other off-takers, remains encouraging as a range of project development strategies are being pursued.
Latest from Guinea
Lindian has continued to advance its three bauxite projects following a decision by the West African nation to lift the curfew in mining areas after internal political issues.
The company had previously confirmed that its contractors and in-country employees were safe and continued to go about their daily business.
Lindian is advancing its three-bauxite exploration and development projects - Woula, Gaoual and Lelouma - and will continue to engage with the relevant government departments.
About the company
Lindian Resources is an Australian company with a portfolio of high-grade bauxite assets on both the West and East coasts of Africa.
The company’s current focus is the Gaoual Bauxite project in Guinea, West Africa, where it is proceeding with an option to acquire 75%.
Gaoual is one of only two known ‘conglomerate bauxite’ occurrences discovered in Guinea, the other being Sangaredi which has been mined for over 30 years by Compagnie des Bauxites de Guinée.
Lindian has also recently acquired interests in the Lushoto and Pare bauxite projects in Eastern Tanzania’s Mozambique Belt including eight highly prospective tenements.