Lindian Resources Ltd (ASX:LIN) has the go-ahead to acquire a 100% interest in Rift Valley Resource Developments Limited after shareholders voted in favour of the purchase.
Rift Valley is a Malawi company that owns the globally significant Kangankunde Rare Earths Project.
Lindian will pay US$30 million for the asset, with $2.5 million already paid and the balance to be divided into three tranches over 48 months from the signature date of the share purchase agreement which was July 28, 2022.
The company believes that due to the interest in the project, it will have no issues raising the final $27.5 million.
Accelerating development
“Receiving shareholder approval is a critical milestone for Lindian and means we can now accelerate the development of Kangankunde," Lindian executive chairman Asimwe Kabunga said.
"In the last week we have also secured strong community support to advance the project, the Malawian Government has again reinforced its commitment and it is evident that investors in Lindian are starting to recognise the potential for what undoubtedly a world-class rare earths asset.
“We now expect to deliver a steady flow of operational and corporate updates as we take Kangankunde into the development phase. We thank shareholders for their support.”
Lindian has been planning for the first phase of exploration for several weeks at what has been described as the “world’s best undeveloped rare earths project”.
Exploration and project development works will kick off within the next few weeks along with Lindian’s maiden drill program.
Read more: Lindian Resources acts quickly to assess Kangankunde Rare Earths Project acquisition target in Malawi