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Lindian Resources (ASX:LIN) has jumped firmly into the green on Wednesday after it inked an REE offtake deal with mature counterpart Iluka (ASX:ILU).
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Iluka, a stock that has climbed +50% MoM, is clearly handing some momentum over to Lindian, which in turn was up 33% heading into the final hour of the morning.
In exchange for a $32 million loan from Iluka to build out infrastructure, Lindian will, for the next 15 years, enter into a deal with ILU which sees it providing up to 6,000tpa of REE monazite concentrate from the latter’s Kangankunde project.
Lindian has the opportunity to further expand its project down the line, though Iluka boasts a controlling veto power over that move. Iluka is eyeing Kangankunde so that the project can supply its own WA-based Eneabba refinery, a facility co-funded by government cash (given the country’s domestic critical mineral hopes).
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HotCopper users were, for their part, net pleased with the move, with sentiment overall positive for the stock. Helping matters is that Lindian reported a “floor price well above [our] expected cost of production;” the company also referenced exposure to government price support.
All in all, Lindian has found itself on the right side of politics on Wednesday.
LIN last traded at 12.5cps.
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