Lindian Resources Limited (ASX: LIN) today announced the further extension of its securities’ voluntary suspension. In today’s market release, mining and exploration group Lindian resources said that the extension to the voluntary suspension is necessary for the company to provide an update to the market on the acquisition of the Malawi rare earth project.
Lindian Resources expects the suspension to remain in place until the earlier of 7 January 2019 or the release of the announcement as stated above.
After the financial year ended 30 June 2018, the company decided to acquire 75% interest in the Kangankunde rare earth Project located in Malawi. The acquisition has been agreed to be undertaken through an exclusive option agreement with Rift Valley Resource Developments Limited (RVR).
Kangankunde is positioned as one of the world largest rare earth projects outside of China. Previously completed test work shows the deposit is amenable to a low-cost gravity separation process and can produce a 60% rare earth oxide (REO) concentrate. Since 2011, two rare earth Praseodymium and Neodymium have been recognized as principal minerals for their strategic importance in permanent magnets for electric vehicles.
The deposit is hosted in an intrusive carbonate pipe which rises to a height of up to 200m above the surrounding plain. Moreover, the Nacala corridor railway line connects the Kangankunde Project directly to the minerals port of Nacala. It is also worth noting that the Kangankunde deposit has deficient thorium oxide levels for a rare earth resource, as the KGK samples previously reported have an average of 11ppm thorium oxide per percentage of REO content. Thorium oxide is a useful measure of the natural radiation level of a rare earth resource as it affects the environmental outcomes associated with the processing of the resource.
Recently, the company secured the execution of consent order between Michael Saner and the Malawi Ministry of Natural Resources and Environmental Affairs which outlines a significant milestone in the acquisition of the Kangankunde Rare Earths Project.
Lindian Resources’ Chairman Asimwe Kabunga stated “The Consent Order was an essential milestone for Lindian and its option to purchase up to a 75% interest in the Kangankunde Rare Earths Project. The settlement between Mr. Michael Saner and the Malawi Ministry of Natural Resources and Environmental Affairs effectively ends 15 years of litigation concerning the Project and has allowed Lindian Resources to complete its due diligence and other conditions precedent to the acquisition.”
Lindian Resources’ stock last traded at $0.019. Moreover, in the past 12 months, the stock has fallen by 26.92%, but in the last six month, LIN’s stock price has gone up by 11.76%.
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