Lindian Resources inks agreement with KB Bauxite to acquire Gauoal Bauxite Project

Lindian Resources announced that it signed an exclusive option agreement with KB Bauxite Guinea Sarlu and its sole shareholder Guinea Bauxite Pty Ltd, in a bid to acquire the Gauoal Bauxite Project. The project spanning over 332 square kilometres is strategically located close to essential infrastructure, 64 kilometres away from Sangaredi Railway and 155 kilometres from deep water Kamsar Port.

According to the agreement, Lindian can initially acquire up to 51 per cent interest in the project. But for that, the company needs to invest around US$1 million towards the project development in the next 24 months, with rights to move to 75 per cent equity interest in KB Bauxite. The agreement also prompts that Lindian will reimburse any funds spent by KB Bauxite on the development of the project.

A further decision whether this transaction will be continued or not will be taken on July 23, 2019, as per the company’s announcement.

Former CEO and Project Director of Alliance Mining Commodities Limited’s Koumbia Bauxite Project will now serve Lindian as a technical consultant to review and progress the Gauoal Bauxite Project opportunity. He will also look after the exploration and development of the company’s Lushoto and Pare bauxite projects in Tanzania.

Lindian Non-Executive Director, Steve Formica, commented: “The Gauoal Project has the potential to transform Lindian into a significant high-grade bauxite producer in the near-term with assets on both the west and east coasts of Africa, allowing us to capitalize on several competitive and logistical advantages.”

On the announcement of this agreement, the suspension of trading in the securities of Lindian Resources is lifted immediately, and as on today on April 11, LYN stock price is trending at AUD 0.015, zoomed up by 25%.

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