Lindian Resources has managed to raise A$ 91.5 million (USD 59.39 million) in funds and has made a dinal investment decision to fully develop Stage 1 of its high-grade Kangankunde Rare Earths Project in Malawi. The capital puts Lindian on track to become the world's next significant producer of rare earth elements (REEs) and other strategic minerals associated with the high-performance use of aluminium in the green energy revolution.
Funds raised, process in progress
The firm obtained commitments for its two-tranche round from new Australian and international institutional investors, with demand well in excess of the funds sought. The issue price of USD 0.21 per new share was a significant premium to the recent volume-weighted average trading price, reflecting strong market confidence in the project.
Now that finance is in place, the Lindian Board has approved the commencement of Stage 1's principal construction, with the target to bring its first production to operation by Q4 2026. The money will also be used to take Lindian's equity in Kangankunde to 100 per cent and expedite engineering work for a significant Stage 2 expansion.
Lindian Executive Chairman Robert Martin commemorated the achievement. "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," adding that "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.”
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Rare earth production to ramp up
The Kangankunde project will yield a high-grade monazite concentrate containing neodymium and praseodymium, crucial for the high-strength permanent magnets employed in wind turbines and electric vehicle motors.
Whereas REEs constitute the heart of the motor, the performance of these clean technologies is dependent to a great extent on lightweighting, which is done by high-strength aluminium alloys in EV bodies, battery housings, and wind turbine nacelles. Finding lighter, stronger aluminium alloys uses rare earth elements, and thus supplies of both are increasingly crucial. This has become even more urgent after China’s recent rare earth export ban as part of its trade war with America.
The project is also supported by a strategic alliance with Iluka Resources, which has offered a USD 20 million construction loan and a 15-year offtake deal for monazite concentrate to supply its newly commissioned Eneabba refinery in Western Australia. Such collaboration between miners, refiners, and customers is key to establishing strong supply chains for all essential minerals like these REEs, which are the materials of the future.
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