Lindian Resources will tomorrow seek shareholder approval to acquire 100 per cent of Malawian company, Rift Valley Resource Developments Limited, that owns the globally significant Kangankunde rare earths project.
The company recently completed a series of meetings with authorities in the Kangankunde district and secured a unilateral directive to commence a series of work programs to advance Kangankunde’s development. Importantly for Lindian, all meetings with local officials and community groups fully endorsed the company’s planned resource development and mining and processing operations plans.
Representatives from Lindian were joined by key Government personnel who visited the project and community along with other mines department staff and community members.
Lindian CEO, Alistair Stephens held a further eight meetings in the regional town of Balaka, 15km north of the Kangankunde site, with notable leaders and committees including the Traditional Senior Authority, Chief Chanthunya; the Kangankunde village area Chief Makolela in addition to a host of district staff and the full Balaka Council including local MP Bertha Ndebele. The company was keen to explain to all present that Lindian was acquiring 100% of the Kangankunde project.
The company say the meetings exploration technical programs leading to the development of a mining and processing operation in addition to were used by the company as an opportunity to confirm its commitment to environmental management, social and business support programs, jobs and training opportunities.
After the shareholder meeting scheduled for this week, the company plans to expedite early works programs including clearing of roads and drill pads leading to a drill program this year. Lindian will also collect bulk samples to commence metallurgical test work.
Management is planning to work on as many drill holes as possible before the wet season starts towards the end of the year. During the wet season, Lindian will focus on a number of other project development and corporate initiatives that do not require site access, with on-site activities scheduled to return in March 2023.
The company’s CEO, Alistair Stephens, said: “The endorsement by the community for our works programs does not properly reflect the absolute delight and enthusiasm the community members expressed for our development plans. In fact, they wished for us to get on with development quicker. And that is what we are now doing. No longer are we a visitor, we are now a community member. I look forward to providing a more detailed update on first works planned at site following the shareholder meeting this week.”
Earlier this month Lindian made its first tranche payment in its bid to acquire current site owner Rift Valley Resource Developments. Whilst the deal is subject to shareholder approval at tomorrow’s meeting, the US$2.5 million payment is the first of four totalling US$30m, with the remaining US$27.5 million payable in three tranches within 48 months from the start of this month.
Management has also conducted a site visit to Kangankunde ahead of the start of the first works program with the company saying it has identified extensive surface mineralisation, particularly near the hilltop area where samples have been taken.
Planning is now underway for the first phase of exploration and project development works including Lindian’s maiden phase drill program.
Kangankunde is considered one of the world’s largest rare earths operations outside of China and hosts an outdated resource of 2.53 million tonnes grading 4.24 per cent rare earths oxide and containing 107,000 tonnes of rare earths oxide when using a cut-off grade of 3.5 per cent. It is a carbonatite-hosted system with mineralisation exposed at the surface and open at depth and therefore has potential to increase in size.
The ratio of neodymium and praseodymium in the total concentrate produced from the project is about 19 per cent and a mining licence has already been granted for the site. Interestingly, the company says neodymium and praseodymium have become increasingly valuable since the project’s economics were last independently evaluated more than 10 years ago.
In the words of Alistair Stephens, “Kangankunde is the worlds’ best undeveloped rare earths project. It is now becoming the worlds’ best developing rare earths project.” The company can clearly talk the talk, time will tell if they can also walk the walk.
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By Matt Birney
