Lindian Resources Ltd (ASX:LIN, OTC:LINIF) has secured an underwriting agreement with Petra Capital Pty Limited for the remaining listed options, ensuring up to A$5 million in potential gross proceeds from the approximately 17.8 million unexercised options (A$0.30 exercise price) due to expire on December 9, 2025.
The underwriting provides an avenue for supportive institutional investors to increase their holdings in the company at what Lindian describes as an important stage of its development and is seen by the board as an endorsement of market support for the company and its assets.
Petra will receive a fee of 6% (excluding GST) of the final underwritten amount, comprising a 2% management fee and a 4% underwriting fee. The agreement is otherwise on standard commercial terms and includes market-standard termination events, including a 10% fall in the S&P/ASX 300 Index.
The options are due to expire at 5:00pm (WST) on December 9, 2025. Settlement of the underwriting shares corresponding to any shortfall is expected on December 18, 2025, with new shares to be issued on or around December 19, 2025.
Lindian starts drilling at high-grade North Knoll target
The $5 million will help support Lindian’s recently started initial drilling program at the high-grade North Knoll prospect, a near-mine target about 800 metres north of the Central Carbonatite Inferred Mineral Resource at its flagship Kangankunde Rare Earths Project in Malawi.
Read more: Lindian kicks off drilling at high-grade North Knoll target at Kangankunde
The campaign is designed to test the depth and continuity of previously mapped ferroan dolomite carbonatite lenses that have returned high-grade neodymium–praseodymium (NdPr) values at surface. Lindian believes success at North Knoll could materially enhance the first years of production under the Stage 1 mine plan.
Executive director Zac Komur said the program has the potential to reshape the early mining schedule.
“Drilling at North Knoll looks to bring high grade, NdPr-rich mineralisation into the first five years of the Kangankunde mine plan,” Komur said. “If we confirm continuity at depth, North Knoll has the potential to provide additional high-grade starter feed, lower unit mining costs and lift early-stage production. It’s a logical near-mine growth step that can enhance both the value and resilience of Stage 1 production planning.”
Lindian confirms high-grade, low-radioactivity metallurgy at Kangankunde
The company also recently reported metallurgical results from Kangankunde, confirming high-grade recoveries and low-radioactivity characteristics.
The company’s monazite concentrate contains 56% total rare earth oxides (TREO), with 20% neodymium-praseodymium (NdPr), a key component in permanent magnet production. Lindian described this product specification as “exactly what you want to monetise a rare earth ore body”.