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The former chairman of a major Western Australia-based mineral explorer is suing the company for performance rights worth around $10 million.
In a writ filed to the WA Supreme Court, former Lindian Resources chairman Asimwe Kabunga claims the company is yet to send him three tranches of vesting notices based on performance rights from his time at the explorer.
Lindian Resources is an ASX-listed company based in Perth that owns 100 per cent of the Kangankunde rare earths project in Malawi.
The operation is considered a world-class project with a resource of 261 million tonnes grading 2.19 per cent total rare earth oxides.
The company has previously stated to the ASX that it expects to begin production at the project this year.
Kabunga was appointed executive chairman in 2022, following five years as a director of the company.
According to a Lindian Resources announcement to the ASX in November 2024, Kabunga resigned from his position as executive chairman of the company.
Almost 18 months later, Kabunga has started legal proceedings against his former company and is seeking damages for breach of contract, in addition to performance claims related to performance rights allegedly owed by the company.
According to the writ, Kabunga claims he is owed performance rights based on Lindian Resources meeting market capitalisation milestones.
He received the first tranche of performance rights, after the company reached a market capitalisation figure of more than $250 million, and was issued two million shares by Lindian back in 2023
However, Kabunga claims he is owed an additional three tranches of performance rights after Lindian reached three further market capitalisation milestones.
According to the writ, the former director claims he is owed three million shares once the company reached a market cap of $500 million, a further five million shares when the company hit the billion dollar market capitalisation mark.
Kabunga also believes he is owed another five million shares for when the company reached a market capitalisation of $1.25 billion, which he claims happened in late March this year.
Lindian Resources closed at 0.82c per share, making the claim worth more than $10 million.
Kabunga is being represented by Erity Legal Services, a firm that specialises in the support of contractual, regulatory, and governance aspects of mining and resource projects and investments.
Lindian Resources has been contacted for comment.
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