Lindian Resources Ltd (ASX: LIN) has received binding commitments from institutional, new, and existing investors to subscribe for an approximate 106.06M fully paid shares at A$0.33 each to raise A$35M before costs.
The company holds the significant Kangankunde rare earths project in Malawi, where extensive mine development drilling has demonstrated the projects’ substantial rare earths grade, geometric size, depth potential, and non-radioactive mineralization.
Lindian executive chairman, Asimwe Kabunga commented, “The funds from this placement, together with our existing cash reserves and potential funding from the future options conversions, puts Lindian in its best-ever financial position and ensures that we are now well-funded to rapidly advance into construction.”
The placement is a key milestone for Lindian as it facilitates the payment of the third tranche of US$10M in relation to its progressive acquisition of 100% of Rift Valley Resource Developments Limited which holds 100% of the Kangankunda rare earths project.
The final tranche payment of US$10M is not due until commencement of commercial production or August 2027, whichever comes first. At its election, Lindian may also make the final payment at any earlier time if it chooses.
The balance of funds raised under this placement puts Lindian in a strong financial position and gives the company the necessary financial flexibility it says it needs to accelerate all ongoing project development works including engineering and construction of its stage one processing plant (with aims to begin operations late next year).
For further information, please visit: www.lindianresources.com.au
