ASX-listed Lindian Resources will acquire a 100% interest in Rift Valley Resource Developments, which owns the Kangankunde rare earths project, in Malawi.
The Kangankunde project is believed to be a globally significant carbonatite-hosted system, with significant potential in size and grade. The project already has a mining licence in place.
The $30-million purchase price for Rift Valley is be paid in four tranches, the first of which comprises a $2.5-million non-refundable deposit, followed by three payments of $27.5-million within 48 months from signing the share purchase agreement.
An inferred mineral resource estimate on the project estimates it to have an inferred resource of 107 000 t of total rare earths oxide (TREO) at an average grade of 4.24%. Historical technical studies undertaken between 1960 and 1990 identified mineralised areas over a wide area and in grades ranging from 1.4% TREO to 23.7% TREO, with low levels of thorium contained.
The ratio of neodymium and praseodymium in concentrate is about 19%.
The project’s economics have not been independently updated since 2011.
Lindian confirms that technical works are under way for Kangankunde, including community engagement, redeveloping access to planned drill programmes and sampling for updated metallurgical testwork.
Chairperson Asimwe Kabunga says this is, without a doubt, an outstanding development for Lindian that delivers a huge value opportunity for shareholders.
“The potential of the Kangankunde project is indeed significant and it has been highly sought after by many parties over a number of decades. Lindian is committed to its development and we will work constructively with the Malawian government to seek to bring this project into production and deliver meaningful benefits to Malawi.
“If shareholder approval is obtained, we intend to hit the ground running and activate multiple project development initiatives to unlock the project’s value as quickly as possible. As this is already a granted mining concession, the scope of works can be much broader and the development timeline shorter,” Kabunga explains.