Lindian Resources (ASX:LIN) Secures A$91.5M Placement & Final Investment Decision
Institutional Placement Success
Lindian Resources Limited (ASX: LIN) has secured firm commitments for a A$91.5 million two-tranche institutional placement. The placement attracted strong demand from Australian and offshore institutional investors, significantly exceeding the funds sought. Approximately 435.7 million new shares will be issued at an issue price of A$0.21 per share.
Final Investment Decision for Kangankunde Project
The Lindian Board has approved the Final Investment Decision for the construction of Stage 1 of the Kangankunde Rare Earths Project in Malawi. Stage 1 is now fully funded with a capital cost of approximately US$40 million, and first production is scheduled for Q4 CY2026. The project is expected to produce around 15,300 tonnes per annum of premium Monazite Concentrate, with robust economics including a pre-tax NPV of A$1.18 billion and an IRR of 99%.
Strategic Partnership with Iluka
Lindian’s strategic partnership with Iluka Resources Ltd includes a binding long-term offtake agreement and a US$20 million construction loan to support Stage 1 development. Iluka holds the right of first refusal for Stage 2 expansion, which will enhance production capacity and provide additional financial backing.
Executive Comments
Robert Martin, Executive Chairman, stated, “We are delighted with the support we have received from new domestic and international institutional investors for this Placement, with demand significantly in excess of funds sought. The demand at a large premium to our VWAP’s and the quality of the investor base attracted confirms to the market the support and understanding that our Tier 1 Kangankunde Rare Earths Project now has in the global investment community.
To be able to declare the Final Investment Decision sets Lindian on the pathway to being the world’s next rare earths producer, a truly remarkable position for your Company to be in. We now have a very clear, fully funded and unencumbered pathway to first production.
The Company now fully funded, will accelerate our already well-advanced pathways to production including finalising major contracts, placing orders for long lead time items, awarding services contracts and fast-tracking our larger Stage 2 studies.
The Company would like to thank Frank Barila and the team at Petra Capital for the amazing effort they have put in bringing this transformational placement together. We would also like to thank our Australian legal advisors, Hamilton Locke, for their ongoing assistance as we reshape Lindian into a global rare earths producer, for their guidance and support during our negotiations with Iluka and for their support through this capital raise.”
Motley Fool contributor Lianne Eastty 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.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.
