Australia-based Lindian Resources has paid the final $10m (A$15.05m) tranche under a share sale agreement to acquire Rift Valley Resource Developments (RVRD), the Malawian company that owns 100% of the Kangankunde rare earths project.
Located in Malawi, the Kangankunde rare earths project is one of the world’s largest and highest-grade rare earth deposits currently in development.
With this payment, Lindian’s stake in RVRD has risen from 67% to 100%, transferring complete legal and beneficial ownership of the project to Lindian and granting the company direct control over the Kangankunde project.
Prior to the finalisation of the transaction, Lindian undertook and completed customary legal, tax and accounting due diligence to ensure a smooth transfer of ownership and compliance with all obligations.
However, Lindian exercised its right to make the payment earlier, completing the acquisition ahead of schedule.
In August 2022, Lindian signed a binding share sale agreement to acquire RVRD for $30m, payable in four tranches over 48 months.
The first tranche, a $2.5m non-refundable deposit, was completed in August 2022, while the $7.5m second tranche was paid in September 2022 following shareholder approval.
The third tranche of $10m was completed in July 2023, increasing Lindian's holding to 67%.
The final $10m tranche, originally due by 31 July 2026 or upon commercial production, has now been completed early.
Lindian Resources executive chairman Robert Martin said: "Achieving 100% ownership of Kangankunde marks another important milestone in Lindian's journey.
“This structure provides clear alignment of our operational entities under which recent contracts have been secure, and with stage one construction advancing rapidly and stage two studies well under way, this consolidation provides full strategic and operational control as we move toward first production on what is one of the rare earth industry's most significant development projects."
In August, Lindian secured formal approval from the Malawi Mining and Minerals Regulatory Authority to extend its mining licence area for the Kangankunde rare earths project from 900 hectares (ha) to 2,500ha.
