Lindian Resources (ASX:LIN) announced the execution of a binding term sheet to acquire 100% of an existing mixed rare earths carbonate processing facility located in Stepnogorsk, Kazakhstan.
The acquisition is structured through an incorporated joint venture, Lindian-RA JV, in which Lindian holds a 51% stake alongside local partner RA-Group (49%).
The facility, previously operated by a joint venture between Japan’s Sumitomo Corporation and Kazatomprom, will be acquired for a total purchase price of US$15 million.
According to the announcement, this represents a cost saving compared to the estimated US$500m required to construct a new facility.
The transaction transforms Lindian's business model "from concentrate only production to high value MREC production attracting premium payabilities with significantly enhanced economics."