Lindian Resources Ltd (ASX:LIN) has completed a non-brokered placement, receiving commitments from sophisticated and professional investors and existing shareholders to raise $1 million through the issue of 33,333,334 fully paid ordinary shares at $0.03 per share.
Subject to shareholder approval, 10 million shares will be issued to Kabunga Holdings Pty Ltd (KHPL), a company associated with Lindian chair Asimwe Kabunga, in repayment of the principal outstanding on a $300,000 term loan facility entered into on October 21, 2021.
Read: Lindian Resources secures short-term loan to continue advancing bauxite projects in Guinea
The company has reached an agreement with KHPL to extend the maturity date of the loan facility until the date of shareholder approval for issue of the 10 million shares, anticipated on February 1, 2022.
According to Lindian, the completion of this agreement will leave the company debt-free and well-funded given its low monthly cash burn rate and modest projected project expenditure.
The shares will be issued under Lindian’s current placement capacity, with the funds raised from the issue intended to be used to advance Lindian’s projects in Guinea and Tanzania, for costs associated with the Kangankunde Rare Earths Project in Malawi and an ongoing dispute in relation to that project, and for general working capital.
Lindian has provided an indicative timetable for the placement below:
About Lindian Resources
Lindian Resources is a bauxite focused exploration company listed on the Australian Stock Exchange under the ASX code LIN.
The company’s combination of assets offers the opportunity for near-term production via the Woula Project while simultaneously advancing the larger, multi-generational bauxite assets, the very high-grade conglomerate bauxite Gaoual Project and the world-class Tier 1 Lelouma Project.