MOU signed between Lindian Resources and CBG for Gaoual bauxite project

Lindian Resources Limited has officially signed a Memorandum of Understanding (MOU) with Compagnie des Bauxites de Guinée (CBG) to explore the possibility of supplying bauxite from its Gaoual project to augment CBG's annual bauxite production through a potential sales contract.

The MOU outlines the following key objectives, emphasizing collaboration and exploration:

• Lindian and CBG will explore various methods of operating, processing, and transporting ore from the Gaoual project to CBG's infrastructure.
• The MOU facilitates the assessment of procurement, quantity/quality determination, selling prices, selling price adjustment mechanisms, penalties/bonuses, and payments between the Parties.
• Lindian commits to completing a Feasibility Study for the Gaoual project within two years, aligning with CBG's JORC criteria for reserves and resources publication. The study should meet specific standards, including drilling density, bauxite density, and no harmful elements for metallurgical processing.
• Both parties will negotiate in good faith the terms of a possible contract for the sale of bauxite within two years from the MOU's commencement.

Additionally, Lindian affirms its commitment to meeting the Aluminium Stewardship Initiative (ASI) Standard requirements and the International Finance Corporation performance standards during the Feasibility Study, commissioning, and operation phases, aligning with CBG's obligations.

The Gaoual project boasts a JORC 2012 Indicated Mineral Resource Estimate of 102 tonnes with high-grade tonnage of 84 tonnes at 51.2 per cent aluminium oxide, and recent screening test work demonstrated improvements in alumina grades by 8.6 per cent.

Lindian's Executive Chairman, Asimwe Kabunga, said, “We are delighted to be collaborating with CBG to advance Gaoual. They have exceptional pedigree as one of the world's most respected and largest bauxite producers and suppliers. We have been advancing discussions with them for a number of years on the potential development of Guinea's next Conglomerate Bauxite project and this MOU marks a very meaningful step in this process. As one of Guinea's most established bauxite producers with extensive mining operations and infrastructure access, a potential partnership delivers obvious benefits to all stakeholders, most importantly the local community and the government of Guinea. The MOU provides an excellent framework to rapidly advance Gaoual.”

In conclusion, the MOU between Lindian Resources Limited and Compagnie des Bauxites de Guinée signifies a promising collaboration to explore bauxite supply opportunities and advance the Gaoual Bauxite Project. This initiative has the potential to create substantial value for all stakeholders involved.