Lindian Resources is now a quality REO company

Lindian Resources is now a quality REO company

We have seen the completion of the recovery pattern since the low in June, with the steepest downtrends having been breached. Now the charts have been hitting secondary downtrend resistance lines as the inflationary and interest rate fears have remerged.

We have mentioned Lindian's Kangankunde rare earth project on a number of occasions previously but it has taken time to dig out historical information that has enabled us to provide a more informed view. Kangankunde is not a recent discovery that has had us waiting for up coming news flow. Rather, it has been recognised as a significant project for at least 20 years - sufficiently so that industry leaders have been jostling for a position, but their objectives have been frustrated by drawn-out litigation concerning legal title. Finally, Lindian has emerged as the victor with a High Court consent order to the right to acquire a 100% interest in the owner, Rift Valley Resource Developments Limited (Rift Valley), as detailed in the ASX release of 1 August, 2022.

The deal allows Lindian to acquire 100% of Rift Valley, thereby enabling 100% ownership of Kangankunde, upon payment of US$30m in five tranches over a four year period. Having paid the first tranche of US$2.5m in August, Lindian is now in the box seat to advance Kangankunde and become a serious rare earth industry participant.