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Julien Balkany's and Stephane Rigny's Lelouma Mining Project Gains New Positive Momentum

by Simbarashe Sithole
14 Oct 2020 at 09:02hrs | Views
CONAKRY, Guinea - The Lelouma Bauxite Project, led by Canadian mining tycoon Stephane Rigny and French financial entrepreneur Julien Balkany is changing hands with the recent announced transaction and despite Covid-19 challenging environement. investment of Australian mining company Linda Resources. Lelouma is a world-class bauxite asset held by Sarmin Bauxite in the Republic of Guinea, West Africa.
 
The developing project is focused on the mining of the highly valuable bauxite rock, which is the world's main source of aluminum. Independent reports shows that the Lelouma Project has a resource of 847 million tons at 45.1 percent aluminium oxide and 2.1 per cent silicon dioxide, making it world-class mining asset. In addition, the project benefits from robust surrounding export infrastructure, making export to the global market easily accessible.

The project is gaining strong positive momentum and will benefit from access to state of the art technical expertise thanks to a recent, investment agreement that the company has signed with Lindian Resources.

The Lelouma Bauxite Project, initially led by the privately owned Sarmin Bauxite ltd, is opening new pathways to success and unlocking value with a new investment agreement entered with the Australian mining company, Lindian Resources Ltd. The transaction represents the sale of a majority of the shares l of the company Sarmin Bauxite (75% stake) to Lindian Resources. This new deal ensures the long-term sustainability and fast-track development of the project.

Julien Balkany, Vice-Chairman of Sarmin Bauxite, commented, "The investment agreement signed between Sarmin Bauxite and Lindian Resources is consistent with our strategy to optimize the Lelouma mining project with the objective of potentially delivering value for all stakeholders" .

According to a press release published on the transaction, Lindian Resources will take control of 75% of Sarmin Bauxite, while Sarmin's shareholders are set to receive a total of 30.67 million new Lindian Resources shares, in exchange. These new shares will be paid at the completion of the transaction to Sarmin Bauxite's shareholders. Additionally, within twelve months of the completion of the definitive feasibility study, Sarmin Bauxites shareholders will have the option, at their sole and full discretion, to sell their remaining 25% stake in exchange for a 1% overriding royalty that might be worth tens of millions dollars. Until then, Sarmin shall benefit from a full, free carried interest on all expenditures related to the Lelouma Mining Project .

As an independent leading mining company focused on Africa, Lindian is listed on the Australian Securities Exchange (ASX ) and specializes in high-grade bauxite sites across Eastern and Western Africa. As such, the junior mining company brings the operational capabilities along with the depth of technical expertise and know-how to move forward with the development Lelouma Mining Project.

Lindian has committed to fund all project expenditure until the Definitve Feasibility Study is fully completed. Realistically according to Guinean sources, the Lelouma Project could start producing up to 20 million tons per year in 5 to 7 years and generate over $500 million in sales per year for over 25 years.

Lindian has committed to fund all project expenditure until the Definitve Feasibility Study is fully completed. Realistically according to Guinean sources, the Lelouma Project could start producing up to 20 million tons per year in 5 to 7 years and generate over $500 million in sales per year for over 25 years.



Source - Byo24News

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