Lindian Resources (ASX:LIN) has confirmed its execution of a ten year lease with Guinea’s Enterprise Generale d’Entretien & Construction and a private individual.

That lease is for the Woula bauxite play in Guinea; the individual in question is one Lancinet Dabo, a Guinean businessman who right before COVID started dabbling in iron ore projects. Lindian has been in talks around Woula since 2020.

Now, close to 5 years later, the company has inked a deal that sees construction of the Woula Bauxite Project (WBP) kick off in the next eight months, which would line up for the start of FY26.

Targeting annual production of 2M tonnes, the company has also said it will receive a royalty “between US$1 [and] US$2” per tonne of bauxite produced from Woula – “depending on the ownership structure of the producing entity.”

That royalty covers the entire Life of Mine (LOM). Perhaps most notable – and this was picked up by at least one HotCopper user in the announcement thread – is that the WBP lies close to a haul road that, in turn, connects to the inland-ish port of Katougouma.

While upriver of the larger Kamsar port in Guinea where the real heavy shipping goes on, Katougouma already has an established bauxite export function and otherwise reflects a direct artery leading to Kamsar, and then, the Atlantic.

The port could really be the hinge on which this project swings.

“Where the Lessees have secured port access for the Woula project or its other projects, it undertakes to make available to Lindian, on a preferential basis, all available excess port capacity,” the company wrote on Monday.

All in all, management has cash generation in sight.

“This binding lease and royalty agreement with a well- established Guinean company and executive will deliver a meaningful passive annual royalty stream to Lindian,” company EC Asimwe Kabunga said.

“.t marks the first step in the Company monetising its bauxite assets and importantly, does not require us to make any capital contribution.”

LIN last traded at 9.3cps.

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