Lindian Resources Ltd (ASX:LIN, OTC:LINIF) has completed the third tranche payment of US$10 million as part of its acquisition strategy for Rift Valley Resources Developments Limited, taking the company a step closer to securing full ownership of the Kangankunde Rare Earths Project in Malawi
To date, the company has disbursed a total sum of US$20 million to Rift Valley to acquire what the company considers one of the most significant and strategically essential rare earth deposits on the global stage.
The final US$10 million tranche payment is scheduled upon the onset of commercial production at Kangankunde or at the latest, by the end of July 2026.
While Lindian reserves the right to advance the final tranche payment, it is not obligated to execute it ahead of schedule, thereby allowing the company to maintain financial flexibility in the process.
With the completion of the third tranche, Lindian now legally holds a 67% stake in the issued share capital of Rift Valley.
Furthermore, the remaining 33% is expected to be transferred and registered under Lindian's name upon the successful completion of the final payment tranche.
MRE imminent
Lindian executive chairman Asimwe Kabunga said: “The Tranche 3 payment marks the continued execution of Lindian’s acquisition of Kangankunde in accordance with the terms set out in the 2022 sale agreement.
"The completion of the Tranche 3 payment establishes the framework for the project’s next phase of development and facilitates the deployment of resources towards near-term value drivers, commencing with reporting of the maiden mineral resource estimate imminently, assays from the two deep diamond drill holes which will lead to the reporting of a broader exploration target for Kangankunde and regular updates on the construction and development of the Stage One on-site processing plant.
"Following the successful July 2023 completion of a A$35 million share placement, Lindian is fully funded to deliver these milestones and will keep shareholders informed of progress."
READ: Lindian Resources raises $35 million to advance Kangankunde Rare Earths Project in Malawi