Perth-based miner, Lindian Resources (ASX: LIN) (Lindian), has paid the final instalment of $10mn for it to acquire 100% of a Malawian exploration company which owned a rare earths project in the southern African nation.
Mining Technology reported on December 10 that with the latest payment, Lindian increased its stake from 67% to 100% in fulfilment of the terms of an agreement they signed in August 2022 for the Australian firm to acquire Rift Valley Resource Developments (RVRD) for $30mn over 48 months.
RVRD wholly owned the Kangankunde Rare Earths Project, which is situated in southern Malawi and is recognised as one of the world’s largest and highest-grade rare earths deposits.
Ahead of the completion of the transaction, Lindian undertook and completed customary legal, tax and accounting due diligence to ensure a transfer of ownership and compliance with all obligations, Mining Technology said.
It paid the first tranche, a $2.5mn non-refundable deposit, in August 2022. It made the second payment of $7.5mn in the following month and the third instalment of $10mn in July 2023, which lifted its stake to 67%.
It has now paid the final tranche that was due by July 31, 2026 or upon commercial production.
“Achieving 100% ownership of Kangankunde marks another important milestone in Lindian's journey,” commented Lindian Resources executive chairman Robert Martin.
“This structure provides clear alignment of our operational entities under which recent contracts have been secured, and with stage one construction advancing rapidly and stage two studies well underway, this consolidation provides full strategic and operational control as we move toward first production on what is one of the rare earth industry's most significant development projects.'
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