PERTH (miningweekly.com) – ASX-listed Lindian Resources will raise A$16-million in a share placement to partly fund the acquisition of the Kangakunde rare earth project, in Malawi.
The company on Friday said it had received firm commitments for the placement of 76.19-million shares, priced at 21c a share, from new and existing sophisticated investors.
Under the placement, 73.4-million shares, and a further 36.7-million options with an exercise price of 30c each and a three-year expiry date, will be issued under the company’s existing placement capacity.
A further 2.7-million shares, and 1.3-million options will be issued to executive chairperson Asimwe Kabunga, subject to shareholder approval at a general meeting.
Lindian told shareholders on Friday that the placement was a key milestone as it facilitated the early payment of the next $7.5-million tranche payment, due in late January, to progressively acquire Rift Valley Resource Development, which owns the Kangankunde rare earths project.
The balance of funds raised is being used to accelerate the mine development drilling programme at Kangankunde, for general working capital purposes, and the cost of the Placement. The programme is operating with three rigs with a fourth mobilising to site. First assays are due in late December with a steady stream of assay results to be reported throughout early 2023.
Lindian shareholders in September approved the $30-million acquisition of Rift Valley, with the purchase price to be paid in four tranches within 48 months from the purchase agreement.
The company is currently conducting drilling work at Kangankunde, where previous work had reported an inferred resource of 107 000 t of rare earth oxide at an average grade of 4.24% total rare earth oxide in 2.53-million tonnes of mineralisation.