Home » Lindian Resources Inks Game-changing Deal with Gerald Metals; Set to Become Key Producer by 2024

Lindian Resources Inks Game-changing Deal with Gerald Metals; Set to Become Key Producer by 2024

by Ikeoluwa Ogungbangbe

ASX-listed mining firm Lindian Resources has entered into its first sales and purchase agreement for monazite concentrate with international commodities trading powerhouse Gerald Metals.

The deal stipulates that Lindian will provide Gerald Metals with 45,000 tons annually of monazite concentrate. This supply will be sourced from the initial phase of the Kangankunde rare earths endeavor located in Malawi. Set to span five years from when commercial production commences, there’s an option to prolong this contract by two more years, broken down into yearly extensions.

It’s noteworthy that the agreed-upon monthly and yearly quantities account for roughly 40% of the monazite concentrate output at Kangankunde.

Moreover, Gerald Metals retains the choice to offer a $10-million run-of-mine financing arrangement for Lindian. Details surrounding this potential facility will be separately discussed and will hinge on financing deals and a prospective security arrangement concerning the mined ore reserves at Kangankunde.

Lindian’s executive chair, Asimwe Kabunga, expressed his enthusiasm about this partnership. “Collaborating with an internationally renowned entity like Gerald Metals marks a pivotal step in fast-tracking the growth of our flagship Kangankunde rare earths project,” Kabunga remarked.

Kabunga went on to provide deeper insights into Lindian’s longstanding partnership with Gerald Metals. “It’s essential to understand that our collaboration with Gerald isn’t something that has materialized overnight. The journey has been exhaustive and deeply involved.

We’ve dedicated countless hours, spanning numerous meetings and discussions, to meticulously shape the terms of this pivotal contract and explore the intricacies of a potential financing model,” he explained.

“Our interactions haven’t been limited to boardrooms. The numerous site visits, on-ground assessments, and strategic dialogues have allowed us to foster a working relationship built on mutual respect and understanding. It’s through this rigorous and continuous engagement that we’ve positioned Gerald Metals not merely as a transactional partner but as a steadfast and reliable ally in our endeavors.”

Turning his focus to the monumental sales contract for monazite concentrate, Kabunga emphasized its strategic importance for Lindian’s future. “This agreement is more than just a commercial transaction.

It’s a testament to Lindian’s capabilities, vision, and determination. It sets the stage for our evolution, transitioning Lindian from a promising entity to a tangible producer by the end of 2024. What makes this achievement even more remarkable is the timeline.

The Kangankunde project became a part of our portfolio only in August 2022. To reach such a significant milestone in a span of just over a year is a reflection of our team’s dedication and the potential of the project itself.”

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