Lindian Resources Ltd (ASX:LIN, OTC:LINIF) continues to advance discussions with various potential funding partners and investors for development of the Kangankunde rare earths asset in Malawi.
During a recent North American roadshow, several funding opportunities emerged with interest expressed in supporting the Kangankunde Stage 1 project and the potential expansion into Stage 2.
The company has also made headway with its ongoing project development activities, notably extending its environmental permit and constructing interim site facilities.
In addition, Lindian has entered into advanced negotiations with two reputable construction firms for a Design & Construct (D&C) fixed-price contract for the process plant, further solidifying progress on the project.
"Excellent progress"
“The company has made excellent progress across multiple project areas. Our recent investor marketing activities in the United States in the past two weeks have significantly broadened awareness of Kangankunde as a future large-scale, high-grade, low-cost rare earths project," Lindian CEO Alwyn Vorster said.
"We also continue to optimise designs, negotiate contracts, create employment structures for the mobilisation of Lindian’s Malawi operations team and identify the candidates to represent Lindian during construction.
“Our team will therefore be primed at the starting line once project funding has been confirmed.
"Whilst our initial objective has been to secure funding for Stage 1’s development in Q3 2024, new funding options have emerged on the back of the feasibility study being released, including scenarios that contemplate funding solutions for Stages 1 and 2 of the project’s development, and as such, these warrant further analysis and negotiation.
"As we have stated, our objective is to deliver the most non-dilutive solution for shareholders and we have every confidence in the process that is now well advanced.”
Funding negotiations progress
Lindian has made significant strides in its financing discussions for the Kangankunde Project.
Meetings were held with current offtake partner Gerald Metals SARL, a part of the Gerald Group, alongside representatives from United States Government bodies, rare earth industry stakeholders, magnet manufacturers and investor groups.
Since the release of the feasibility study on July 1, 2024, interest in the project has broadened. Strong interest has been expressed in funding both Stage 1 of the Kangankunde development and, potentially, Stage 2, pending the results of an additional feasibility study.
Lindian is assessing funding options and will provide the market with further updates as developments progress.
Kangankunde project update
In good news for Lindian, the company has received confirmation from the Malawi Environmental Protection Authority that the Environmental and Social Impact Assessment (ESIA) certificate for the project will remain valid, given the progress made so far.
The ESIA certificate, along with other required licences and approvals, is critical for the development of the project.
Lindian has initiated the construction of interim site administration facilities to accommodate personnel and visitors on site.
Vorster recently visited the shortlisted Design & Construct (D&C) fixed-price process plant contractors to review their manufacturing and administration facilities.
Discussions covered clarifications on the final scope of works, negotiations on pricing and the project schedule.
Based on additional test work and insights from these contractors, minor adjustments may be made to the original flowsheet to mitigate risk and enhance recovery.
Lindian is confident that the cost of the process plant will remain within the capital cost estimates outlined in the feasibility study.
The company anticipates awarding the process plant contract by the end of October, pending funding confirmation.