Lindian Resources (ASX:LIN) Updates on Kangankunde Rare Earths Project Delivery and Financing
Project Financing Progress
Lindian Resources has received a non-binding proposal for a US$30 million Senior Secured Term Loan from Ecobank Malawi Limited. Additionally, a leading European investment bank has presented an indicative Senior Secured Bond with a target gearing ratio of 60:40 (Debt:Equity). The company is also evaluating an existing US$50 million funding package from Gerald Group alongside other offtake prepayment proposals from commodity traders and end users.
Project Execution Milestones
Preconstruction road and site works for the Kangankunde Project are ahead of schedule and under budget. Lindian has shortlisted three Design & Construct contractors, with awards expected in the coming weeks. An optimised feasibility study is nearing completion, and a power supply agreement is set to be finalized in the June quarter.
Strategic Market Engagement
The company is engaged in ongoing discussions with downstream partners in the USA, Asia, and CIS markets. Currently, 40% of stage 1 production is under contract, with product samples being dispatched to potential partners.
Corporate Cost Disciplines
Lindian has completed a corporate restructure, achieving significant cost savings and establishing a focused executive and management team to drive the Kangankunde Project.
Outlook and Next Steps
Lindian aims to secure the necessary contracts, finalize the Mining Development Agreement, and commence full construction shortly. The company is also progressing tailings management and logistics trade-off studies to support sustainable project development.
Executive Comments
Executive Chairman Robert Martin commented:
“The Company has been working tirelessly to ensure that it can execute on its objectives and have the Kangankunde rare earth project into production in 2026. It is extremely pleasing to see the quality of the companies reaching out to enquire about Lindian, its projects, products, timelines and partnership potential as we continue to advance the project forward.
As we are entering this transformational period for the Company with development, financing and construction plans now well advanced we will see an elevated level of activity for which the Company is now extremely well placed to capitalise on.
I would like to thank the staff past and present for their diligence, enthusiasm, effort and hard work during this period as we transform from concept to project development and ultimately a global supplier of high-quality rare earths.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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