Lindian Resources Ltd (ASX:LIN, OTC:LINIF) is well-funded with existing cash reserves of A$24 million as it advances the development and commissioning of the Stage-1 mine and processing plant at the Kangankunde Rare Earth Project in Malawi.
Following the recent sales contract with Gerard Metals, the company has fielded approaches from several industry participants for equipment financing, pre-sale and off-take agreements and longer-term debt funding for project development.
At the field, Lindian’s 4000-metre infill drill program is progressing ahead of schedule with almost half the drill holes completed.
This mine development drill program is designed to convert a portion of the inferred mineral resource to indicated in connection with a feasibility study, anticipated to be published in the March quarter of 2024.
Alongside the mine development drill program, the Lindian team is also progressing with geotechnical drilling designs in order to make a structural assessment of the key criteria that have been established with respect to the mine design.
$LIN Lindian Resources partners with American trading house to fast-track Kangankunde production https://t.co/xr00OZpJ7J @asxlindian $LINIF #LIN #LINIF #ASX #ASXNews— Proactive Australia (@proactive_au) September 25, 2023
Number of funding options
Lindian executive chairman Asimwe Kabunga said: “Lindian is well-capitalised following a successful $35m Placement undertaken in July.
“Added to this, the Board has been presented with a number of funding options over the course of this year to fully fund the Stage 1 Processing Plant at Kangankunde – scheduled to commence production in late 2024.
“Near-term, the strength of Lindian’s balance sheet provides the company with ample capacity to rapidly advance operational priorities including current infill mine development drilling, engineering works and the purchase of key equipment items for the processing plant.
“The recent agreement with Gerald Metals is a great development and has added momentum to other funding and offtake negotiations.
“As we have consistently communicated, the Board will pursue the most non-dilutive funding options that are in the interest of shareholders and current negotiations align with this.”
Planning and development
Planning and development works continue to progress for the Stage 1 Processing Plant at Kangankunde which is being designed to produce a marketable volume of monazite mineral concentrate with an NdPr ratio that ranges from 18% to 22%.
Work streams for the design and construction of the Stage 1 processing plant & and infrastructure are progressing, the civil works design is nearing completion, the Tailings Storage Facility design commenced and the detailed topographic study completed.
Lindian CEO Alistair Stephens said: “The MRE places the project in an elite category, and with our engineering programs progressing to near completion, along with the first offtake agreement with Gerald Metals, the level of interest in Kangankunde and its rare earth products is reflective of the project’s quality.
$LIN Lindian Resources moves closer to rare earths production in Malawi with mine development drilling well advanced https://t.co/ynqaR06IHD @asxlindian $LINIF #LIN #LINIF #ASX #ASXNews— Proactive Australia (@proactive_au) September 20, 2023
Forward plan
Lindian is well-advanced on an exploration target assessment of mineralisation below the mineral resource estimate, following the completion of the phase 2 deep-drill program
Stephens added: “Infill drilling is well-advanced with first assays ready for despatch, and Lindian’s ongoing mine development drill works will be complemented by the pending announcement of an Exploration Target (NYSE:TGT) for mineralisation at depth below the MRE.
“With a busy operational schedule over the coming months, we look forward to providing more project updates and other corporate developments.”