On 23rd September’20, Lindian Resources announced that it has signed a binding agreement to acquire a 75% interest in Sarmin Bauxite Limited, a private company that holds the rights for the Lelouma Bauxite Project in Guinea.
Lindian will get the opportunity to earn a 75% stake in the 847 million tonnes Lelouma deposit by issuing the vendors 30.7 million shares valued at 1.6c each and delivering a definitive feasibility study.
The Lelouma Project has an exceptional resource base and has been systematically explored with over US$10 million of historic expenditure by Sarmin and Lelouma’s previous owner, Mitsubishi Corporation.
The plateaux hosting the Lelouma bauxite mineralisation are located around 100km northeast of Sangarédi, site of the CBG railway line loading area. The rail line is in turn around 100 km northeast of the port in Kamsar, which exports up to 25Mtpa of bauxite. Lelouma is located just 40km from Lindian’s high-grade Gaoual conglomerate bauxite project.
According to Lindian's CEO Danny Keating, "we believe that staged development of bauxite assets is critical, starting with lower Capex assets that are close to the coast or existing infrastructure, such as Woula".
Meanwhile, an A$1 million placement is the pricing per shares at 1.6c. Lindian started the current quarter with $600,000 cash.
However, given the distance to coast Lindian is initially looking at the opportunity afforded by an earlier stage bauxite asset, Woula, also part of the transaction unveiled today.
Woula is close to an existing haul road connected to a river port and offers near term production and cash flow opportunity by selectively mining higher-grade zones.
Note to readers: AlCircle brings two-day event for aluminium industry players. We look forward to meeting you virtually at “Global Aluminium Expo 2020” on October 6-7, 2020. For registration, visit www.alcircleevents.com
Responses
