Lindian Resources has finalised a binding share purchase agreement (SPA) to acquire the remaining 25% interest in Bauxite Holding from its minority partners, securing full ownership of the Lelouma Bauxite project in Guinea.
The Lelouma project, with more than $10m invested by previous owners, is located near significant infrastructure including a railway line and the Kamsar port.
The project has a JORC-compliant mineral resource of 900 million tonnes (mt) at 45% aluminium oxide and 2.1% silicon dioxide.
The Lelouma project targets the production of direct shipping ore (DSO), eliminating the need for processing.
Full ownership of the project removes the risk of ownership dilution and financial commitments associated with the initial acquisition.
Lindian will implement a new in-country management team to handle regulatory approvals, project development, and negotiations with potential port and infrastructure partners.
Following a strategic review and two months of negotiations, Lindian and its minority partners have agreed on the SPA, which includes issuing 20 million consideration shares and a 1% royalty to the sellers.
These shares will be in voluntary escrow for six months post-issue. The SPA’s completion is expected within 14 days from signing, allowing Lindian to focus on the project without previous conditions.
Lindian Resources executive chairman Robert Martin said: “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 rising demand for aluminium and its related products in electric vehicle production with a market that is estimated to reach ~$18.5bn by 2030, the company believes that the Lelouma project with approximately 900mt of high-grade material can be a big part of this.
“The company is also in discussions with a new in-country bauxite team of experts to work independently on developing the Lelouma project, which allows the company to remain completely focused on our commitment to bringing our Kangankunde rare earths project into production by 2026.”
Earlier this month, Lindian Resources commenced early-stage site works at the Kangankunde rare earths project in Malawi.
