Lindian Resources Ltd (ASX:LIN) has acted quickly to get boots on the ground as it assesses the Kangankunde Rare Earths Project acquisition target in Malawi.
The company has conducted its first site visit ahead of beginning the first works program at what has been dubbed the “world’s best undeveloped rare earths project”.
During the visit, Lindian CEO Alistair Stephens steered discussions with the ministry, local authorities, chiefs and other stakeholders, all of whom have endorsed the proposed developments at Kangankunde.
Lindian also completed its first tranche payment of $2.5 million two weeks ago to Rift Valley Resource Developments Ltd as the commencement payment towards potentially acquiring 100% of the project.
Looking ahead, planning is underway for the first phase of exploration and project development works which will kick off next month along with Lindian’s maiden drill program.
"Worlds’ best undeveloped rare earths project"
Lindian CEO Alistair Stephens said: “We have wasted no time getting on the ground in Malawi and assessing the Kangankunde and its potential.
“We have also held extensive discussions with the government, regional representatives and other critical stakeholders – all of which are supportive of developing Kangankunde.
“As such, we are now actively advancing the planned Q4 works program.
“I started this role stating that Kangankunde is the world’s best undeveloped rare earths project.
“It is now becoming the worlds’ best developing rare earth project.
“My work has only just begun, and I look forward to leading the company on this journey of development in what I believe will present as the best opportunity for a rare earths project ever.”
About Kangankunde
Kangankunde is about 100 kilometres north of Blantyre within the Machinga district of Southern Malawi.
The deposit has a historic inferred resource of mineralisation, which is exposed at the surface and open at depth.
Historic metallurgical test-work has demonstrated the mineralisation is amenable to low-cost gravity separation to produce a high-grade concentrate.
The deposit contains a central zone of carbonatite rocks passing outwards to a series of broadly concentric zones of altered agglomerate, altered host rock and ultimately into unaltered gneiss host rock.
Forward plan
CEO Alistair Stephens is planning to return to Malawi in late September to present to the full committee of the Balaka district development committees the company’s plans to conduct:
- site aerial topographic survey;
- re-establish site access tracks;
- establish drill pads; and
- a drill program this year.
A geophysical gravity survey has been postponed to next year due to the necessity to clear lines through thick grass.
Acquistion progress
Lindian's commencement payment is the first of four tranche payments totalling US$30 million, with a further US$27.5 million payable in three tranches within 48 months from the signing date.
The acquisition is subject to Lindian shareholder approval while all legal and regulatory requirements in Malawi have been complied with.
A Notice of Meeting and proxy form for a shareholder meeting has been issued for the General Meeting at 3:00pm (WAST) on Tuesday, September 27, 2022, at the HLB Judd Boardroom, Level 4, 130 Stirling Street, Perth, Australia.
The Tranche 1 payment is another important step forward for Lindian and its development plans for Kangankunde.
Notably, Lindian has the right, but not the obligation, to make the remaining payments sooner, to accelerate the acquisition.