Lindian raises cash for Rift Valley buy

12th July 2023

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia


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PERTH ( – Rare earths developer Lindian Resources will raise A$35-million in a share placement to fund the third-tranche payment of its acquisition of the Kangankunde rare earths project, in Malawi.

The ASX-listed company has received binding commitments for the placement of 106.06-million shares, at a price of 33c each, representing a 12% discount to its 15-day volume weighted average share price.

The shares will be issued under Lindian’s existing capacity and will not require shareholder approval.

The company said on Wednesday that the placement was a key milestone for Lindian as it facilitated the payment of the third tranche of $10-million in relation to the acquisition of Rift Valley Resource Development, which owns the Kangankunde rare earths project.

The final tranche payment is not due until the start of commercial production, or August 2027, whichever is earlier.

The balance of the funds raised, along with existing cash reserves and future option conversions, gives the company the necessary flexibility to accelerate all ongoing project development works, including the engineering and construction of the Stage 1 processing plant with the aim of entering operations late next year.

“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,” said executive chairperson Asimwe Kabunga.

“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 neodymium and praseodymium 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.”

Edited by Creamer Media Reporter


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