Lindian Resources is one step closer to 100 per cent ownership of its Kangankunde rare earths project in Malawi after completing the second tranche payment of $US7.5 million to former owner Rift Valley Resources.
The latest figure is the second of four tranche payments with the third amount due in August this year and the fourth set for August 2026. The first portion of $US2.5 million was paid in August last year. Lindian agreed to pay Rift Valley a total of $US30 million for the project across the four tranches with $US20 million remaining.
Kangankunde is considered one of the world’s largest rare earth operations outside of China and hosts an outdated resource of 2.53 million tonnes grading 4.24 per cent rare earths oxide and containing 107,000 tonnes of rare earths oxide when using a cut-off grade of 3.5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. The site sits on a carbonatite-hosted system with mineralisation exposed at the surface, open at depth and the company sees plenty of potential to increase its size.
The company already has a mining licence and environmental approvals in place that will allow Lindian to fast-track the project.
Lindian Resources Executive Chairman, Asimwe Kabunga said: “We are pleased to have completed this second tranche payment – an important milestone for Lindian. We remain well-funded in the medium term to deliver significant value from the first phase drill program which is producing outstanding assay results.”
Earlier this month the company tabled its first assay results from its maiden drill campaign at Kangankunde with remarkable figures. Assay highlights include a 1m section recording an outstanding 11.8 per cent total rare earth oxide, or “TREO” from 13m with a second 1m section going 11.1 per cent TREO from 12m.
Wider assays from the first hole drilled showed a whopping 110m segment at an average of 2.9 per cent TREO from surface that includes a 12m section going 4.2 per cent TREO from surface. The 12m hit includes 1m at 7.2 per cent TREO from 8m in addition to 1m reading 6.4 per cent TREO from 4m.
The second hole recorded an even wider 250m at an average of 2.9 per cent TREO from surface that includes 16m at 5.7 per cent TREO from surface.
The ratio of neodymium and praseodymium, or “NdPr” in the total concentrate at the project is about 19 per cent. The ratio of NdPr in the first set of assays came in at an impressive 21 per cent of the total content.
Lindian backed up the results from its first two drill holes earlier this week with a massive 300m hit at 2.31 per cent TREO from surface.
With its impressive early results in addition to ongoing drilling and assays pending, it is no wonder Lindian was keen to lock in the latest tranche payment to secure Kangankunde from its previous owners.
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By Matt Birney
