Lindian Resources Ltd (ASX:LIN) has successfully completed a $35 million placement, securing the necessary funding to help achieve its ambitions in the rare earths mining sector.
Completion of the placement has involved the issuance of around 106.06 million fully paid ordinary shares at $0.33 per share to new and existing sophisticated investors.
War chest for Kangankunde
Lindian's successful placement not only secures the necessary funds for its future endeavours but also underscores its commitment to responsible capital management.
This move marks a significant milestone for Lindian as it seeks to solidify its position in the industry.
The primary objective for the capital raise is to facilitate the $10 million third tranche payment required for the acquisition of Rift Valley Resource Developments Ltd.
This acquisition includes the ownership of the flagship Kangankunde Rare Earths Project in Malawi.
With a robust cash position and no debt, Lindian Resources is poised to transform the Kangankunde project into a globally significant rare earths venture.
In addition to the acquisition, funds will also be allocated toward the construction of the Stage One Processing Plant, with commissioning and operations expected to commence in late 2024.
The successful completion of the placement demonstrates strong investor interest in Lindian's growth prospects and its commitment to the development of the Kangankunde project.
Upcoming results will inform MRE
The company is now well-positioned to advance multiple near-term value drivers, leveraging the final assays from a drill program, which will form part of the maiden mineral resource estimate (MRE) for the Kangankunde project.
The company now awaits the pending assays from the first of two deep diamond drill holes, a critical component of the phase two deep drill program.
These results will inform the subsequent reporting of an exploration target at Kangankunde, and Lindian hopes they will further enhance the project's value.
"With the completion of this placement, Lindian is now fully funded for its next phase of growth and development at Kangankunde,” executive chairman Asimwe Kabunga said. “The completion of the third tranche payment allows the company to focus its efforts on the execution of several near-term value drivers.
“The maiden MRE is in preparation with the company waiting on deep drill-hole assays for the exploration target.
“The placement is also in alignment with Lindian's capital management objectives to maintain a strong cash position with no debt and leaves the company well positioned to develop Kangankunde into a rare earths project of global significance."