Lindian Resources Limited (ASX: LIN), headquartered in Perth, Australia, is a mineral exploration company that operates in Australia and Tanzania. Its primary interest lies in gold and bauxite ores. The company’s portfolio of assets includes the Uyowa Gold Project located in Western Tanzania and the Kahama Gold project located in Tanzania.
On April 10th, 2019, the suspension of trading in the securities of Lindian Resources was lifted immediately after the release of an important announcement regarding an agreement with KB Bauxite Guinea SARLU. Prior to this, the stock last traded at AUD 0.019 on November 1st, 2018. Today on April 11th, LYN stock price is trending at AUD 0.015, zoomed up by 25% (as at 01:06 PM AEST), indicating an intra-day gain of AUD 0.003 on the last day’s closing of AUD 0.012 (down by 36.84%).
Recently, Lindian Resources announced to have signed an exclusive option agreement with KB Bauxite Guinea SARLU and its sole shareholder Guinea Bauxite Pty Ltd to acquire the Gauoal Bauxite Project spanning around 332 km sq. and covering a highly prospective tenement. Accordingly, Lindian has the right to acquire up to an initial 51% interest in the Project by spending around USD 1 Million over 24 months into the ground with rights to move to 75% equity interest in KB Bauxite subject to contain terms and conditions. The option requires due diligence being conducted and the decision to continue with the transaction will be taken until July 23rd, 2019. Lindian will reimburse any funds spent by KB Bauxite on the development of the project during this period.
Besides, the project is strategically placed close to essential infrastructure, that is 64 km from Sangaredi Railway and 155 km from deep water Kamsar Port. Guinea produces high-quality bauxite due to its tropical location and accounts for approximately 40% of global bauxite reserves.
Former CEO and Project Director of Alliance Mining Commodities Limited’s Koumbia Bauxite Project, Bob Adam has been appointed as technical consultant for Lindian to review and progress the Gauoal Bauxite Project opportunity as well as advance the exploration and development of the Company’s Lushoto and Pare bauxite projects in Tanzania.
Lindian Non-Executive Director, Steve Formica, commented that “The Gauoal Project has the potential to transform Lindian into a significant high-grade bauxite producer in the near-term with assets on both the west and east coasts of Africa, allowing us to capitalize on several competitive and logistical advantages.”
On April 1st, 2019, Lindian also updated the market on its ongoing projects. The mobilization for a drilling programme is underway at the Company’s 51% owned Lushoto and Pare bauxite projects. The campaign would include auger drilling programs involving around 66 and 41 auger holes for both the Pare and Lushoto projects respectively.
Moreover, the company is continuing with its geological mapping of the Uyowa project area in Tanzania to identify additional high-grade drilling targets.
Recently, Lindian also entered into a $ 1 million loan facility (12-month term) with Rose Lawn Limited to ensure that it remains fully funded for its activities, and may assess and proceed with various other financing offers as its Projects progress over the coming months.
As per the company’s half-year accounts for the period ended December 31st, 2018, the net loss from continuing operations was recorded at $ 326,944. The net assets amounted to $ 950,136 including net cash and cash equivalents of $ 173,802.
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