Lindian Resources Ltd (ASX:LIN) has raised $16 million in a well-supported placement for about 73.45 million fully paid ordinary shares to new and existing sophisticated investors at 21 cents per share with attaching options of 36.73 million.
Funds are being used to make the second US$7.5 million acquisition payment to Rift Valley Resource Developments Ltd which will see the company progressively acquire 100% of the globally significant Kangankunde Rare Earths Project in Malawi.
Looking ahead, Lindian is now well-capitalised and is aggressively ramping up mine development drilling and project development engineering works at Kangankunde.
The Kangankunde Rare Earths Project is a globally significant rare earth resource, hosting a carbonite intrusive with outstanding grades of up to 23.7% total rare earth oxides (TREO) that importantly contains very low thorium.
Unlock Kangankunde’s value
Lindian executive chairman Asimwe Kabunga said: “Now that this placement is completed, we are very well capitalised to unlock Kangankunde’s value through what will be the most comprehensive mine development drilling and engineering works program in the history of the project.
“The macro environment for critical minerals, particularly rare earths, is very favourable, and Lindian is in a very unique position with an asset that we are sure will deliver in terms of grade and scale. We look forward to updating shareholders next week on progress.”
Forward plan
Lindian will update shareholders next week on the progress of the drill program as well as the community and government liaison activities at the project.
As advised, the first assays from the drill program are likely to be released later this month.
What's more, Lindian chairman Asimwe Kabunga and CEO Alistair Stephens will brief shareholders on the company's mine development drilling program, community and government relations and the forward works program at the shareholders briefing on December 13, 2022, 11:00 am AEST.