Lindian Resources has successfully filled the coffers with a whopping $35 million in its recent fundraising drive, with commitments from both new and existing institutional and sophisticated investors, who subscribed for more than 106 million fully-paid ordinary shares at a price of 33 cents each.
The company said the strong interest in the placement reflects the recognition of the immense potential of its spectacular Kangankunde rare earths project in Malawi. Extensive drilling conducted at Kangankunde has demonstrated the presence of a globally-significant rare earths deposit that ticks all the boxes – high-grade mineralisation, substantial size, significant depth potential, a high ratio of neodymium and praseodymium and non-radioactive characteristics.
Significantly, completion of the share placement enables the company to make the third tranche payment of $14.95 million as part of its progressive acquisition of 100 per cent-ownership in Rift Valley Resources, the entity currently holding Kangankunde.
Lindian Resources executive chairman Asimwe Kabunga said: “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. 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, puts Lindian in its best-ever financial position and ensures that we are now well-funded to rapidly advance into construction.”
Management says it has made outstanding progress in a relatively short period of time at Kangankunde, with the mineral resource estimate due to be reported soon. The first assays from the company’s successful deep diamond drilling down to 1000m have been released and the numbers could substantially increase the exploration target estimate at Kangankunde, as both holes showed signs of potential mineralisation all the way down.
Lindian now holds a strong cash position, with no debt and the funds to pay the last payment to secure ownership of the Kangankunde project, which has an approved mining license issued by the Malawi Government.
Kangankunde is already an extraordinary rare earths deposit by any measure. Important for any rare earths deposit is the ability to process the metals and Lindian says it can beneficiate its ore by using simple gravity, rather than spending possibly hundreds of millions of dollars on a chemical-based floatation-style plant, providing another significant tick along the pathway to production.
The Malawian deposit is now considered one of the world’s major rare earths operations outside China and Lindian is currently in a highly favourable financial position, providing the company with the essential flexibility to expedite various project development activities. That includes the engineering and construction of its stage-one processing plant, with the goal of starting operations by the end of the next calendar year.
Additionally, the funds secured through the placement grants the company complete control over future production from stage-one operations at Kangankunde. It enables management to independently determine and negotiate future offtake agreements, which are anticipated to be established once the initial mineral resource estimate is published.
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