Lindian Resources Ltd (ASX:LIN, OTC:LINIF) continues to progress development planning for the Kangankunde Rare Earths Project in Malawi, today providing an update of project funding and corporate activities.
Project funding
Lindian recently executed a US$50 million non-binding term sheet with leading global trading house Gerald Group for funding and offtake of the Kangankunde Rare Earths Project.
READ: Lindian Resources signs US$50 million non-binding term sheet with Gerald Group
Lindian continues to advance negotiations and finalise details of the binding terms, as Gerald Group’s technical team and their external engineering group commence internal meetings and due diligence of the data room.
Workshops are scheduled in the second half of January in Johannesburg, followed by a site visit. The work is currently on schedule to deliver an outcome within the funding exclusivity period.
More cost-efficient flowsheet
The company has undertaken an extensive review and optimisation of the processing flowsheet proposed in the feasibility study, resulting in a more cost-efficient and technically robust flowsheet for the construction and operation of the processing plant.
Once final drawings have been completed, details of the optimised flowsheet will be included in future market communication.
READ: Lindian Resources Kangankunde feasibility study confirms very low-cost project with 45-year mine life; shares up
Lindian completed an additional diamond drilling program in November, with the main aim to collect a larger representative sample of the first five production years.
This will be used in ongoing metallurgical test-work and particularly to prepare marketing samples to support offtake discussions over the next few months.
D&C contract to be awarded
Lindian’s CEO and project director visited shortlisted design and contract (D&C) fixed price process plant contractors in the last quarter, with discussions and finalisation on the final price and schedule having advanced significantly since then.
The company aims to award the D&C contract within the next few weeks, with procurement and mobilisation then only remaining subject to funding conclusion.
Road and site office
During the last month, construction of the modest site administration building was completed, which will be used during the construction phase before being supplemented or replaced during the operations stages.
Kangankunde renovated site administration office.
With regulatory approvals for the site access road intersection with the government-sealed road now in place, Lindian is finalising the contract for the intersection (extra traffic lanes), 5-kilometre road corridor and a 1-square-kilometre site entry area (security fencing, gate and guardhouse).
These early facilities will further support the efficient and safe movement of equipment and personnel to site and avoid undue interaction with the local population.
CFO recruitment underway
The company is currently recruiting a chief financial officer to support the CEO and board in securing optimum funding solutions and to improve overall governance of expenditure and management of subsidiary companies.
Updated plan and budget
In light of recent management changes, Lindian has reviewed all costs and operational efficiencies to develop a comprehensive 18-month plan and budget.
The plan ensures key milestones and initiatives are clearly defined to support and enable the company’s vision to become a globally significant rare earths producer within five years.
This includes optimising the development of Kangankunde Stage 1 to achieve production by mid-2026 and finalising studies for Stage 2 expansion (~3x increase) by end of 2025.
Investor Webinar
Lindian has scheduled an investor webinar that will feature an update from newly appointed non-executive chair Robert Martin and CEO Alwyn Vorster.
Details of the webinar are:
Event: Lindian Resources Ltd (ASX:LIN, OTC:LINIF) Investor Webinar
Presenters: Chair Rob Martin (introduction) and CEO Alwyn Vorster (project update)
Date: Wednesday, January 22, 2025
Time: 12:00pm AEDST (9:00am AWST)
Register: https://zoom.us/webinar/register/WN_5lIL3jwJRRih9pesdEHJ2A