The Lelouma project targets the production of DSO, eliminating the need for processing.
The project holds a JORC-compliant mineral resource of 900 million tonnes (mt) at 45% aluminium oxide and 2.1% silicon dioxide. It is focused on the production of direct shipping ore (DSO), which does not require processing. Full ownership of the project eliminates the risk of ownership dilution and financial commitments tied to the initial acquisition.
Lindian plans to implement a new in-country management team to oversee regulatory approvals, project development, and negotiations with potential port and infrastructure partners. After a strategic review and two months of negotiations, Lindian and its minority partners agreed on the SPA, which includes issuing 20 million consideration shares and a 1% royalty to the sellers. The shares will be in voluntary escrow for six months after issuance. The SPA’s completion is expected within 14 days from signing, enabling Lindian to focus on the project without previous conditions.
Lindian Resources executive chairman Robert Martin commented: “The company is pleased to have resecured 100% ownership of this world-class asset. We can now invest in the project’s continued development unencumbered without time constraints, multimillion-dollar milestone caveats, and minority partners.”
With increasing demand for aluminum, particularly in electric vehicle production, which is expected to reach a market size of around $18.5 billion by 2030, Lindian believes the Lelouma project, with its 900mt of high-grade material, can play a significant role in this sector. The company is also in talks with a new in-country bauxite team of experts to focus on developing the Lelouma project while also advancing its Kangankunde rare earths project in Malawi, which is targeted for production by 2026.
Earlier this month, Lindian Resources began early-stage site works at the Kangankunde rare earths project in Malawi.
