PERTH (miningweekly.com) – ASX-listed Lindian Resources will raise A$9-million in a private placement to fund the acquisition of key equipment and long-lead-time items for its Stage 1 concentrate processing facility at the Kangankunde rare earths project, in Malawi.

The company will raise A$8.5-million through the placement of more than 32.6-million shares, at a price of 26c a share, to two new investors, one of which was investing A$7.5-million and the other A$1-million.

The company will also issue 16.3-million unlisted options, exercisable at 35c a share and expiring three years from the date of issue.

In addition, Lindian has also received a binding commitment from executive chairperson Asimwe Kabunga for an additional A$500 000 of new shares on the same terms and conditions as the investor placement, subject to shareholder approval.

Lindian told shareholders on Monday that the company was rapidly progressing plans for the Stage 1 rare earths concentrate facility at Kangankunde, and that the placement would allow Lindian to fast-track securing key equipment and long-lead-time items. The company is hoping to have the rare earths facility operational by 2024.

“This funding allows the company to complete our drill programmes, metallurgical testwork and resource statement that will underpin Kangankunde’s status as one of the largest rare earths projects in the world, unique for its scale, grade and non-radioactivity,” said CEO Alistair Stephens.

“Concurrently, we are rapidly advancing the Stage 1 rare earths concentrate processing plant which we expect will deliver significant revenue and act as the feasibility programme for development of the much larger Stage 2 expansion. In this context, Lindian is uniquely placed and we look forward to providing more details on our development programmes as we rapidly advance towards first production.”