Lindian Resources Ltd (ASX:LIN) has secured a crucial A$35 million investment from institutional investors and sophisticated stakeholders in a heavily-bid placement, bulking the company's financial muscles to advance the globally-significant Kangankunde Rare Earths Project in Malawi.
Described as a key milestone for Lindian, the funds raised put the company in its best-ever financial position and will allow it to pay the third tranche of US$10 million for the 100% acquisition of Rift Valley Resource Developments Ltd, the owner of the Kangankunde project.
The final US$10 million tranche payment is not due until the commencement of commercial production or August 2027, whichever the earlier.
"Exceptionally good outcome”
“This placement is an exceptionally good outcome for Lindian and we are pleased to welcome a number of respected and reputable domestic and offshore institutional investors to our register,” Lindian executive chairman Asimwe Kabunga said.
“The considerable interest received is clear recognition that Kangankunde is a globally significant rare earths project of considerable scale and grade, and the potential for Lindian to be a major supplier of NdPr to the global economy in the near future.
“The funds from this placement, together with our existing cash reserves and potential funding from future option conversions, put Lindian in its best-ever financial position and ensure that we are now well-funded to rapidly advance into construction.
“With multiple near-term value drivers pending, including our maiden mineral resource estimate, a key catalyst to lock in first commercial offtake agreements, the potential definition of a much larger exploration target and Stage 1 project development works, we anticipate further shareholder value being added.”
Significant progress made
Lindian chief executive officer Alistair Stephens added: “Lindian has made outstanding progress in a relatively short period of time at Kangankunde, which will be reflected in the company’s mineral resource estimate due to be reported very shortly.
“Another key milestone is reporting first assays from our deep diamond drilling, where we have drilled down to 1,000 metres and provide the framework to potentially report a much larger exploration target estimate at Kangankunde.
“With a very strong cash position, no debt and with the Tranche 3 US$10 million acquisition payment secured, Lindian is in exceptionally good shape and can now capitalise on the delivery of the multiple work streams we have underway.”