Big players line up to fund Lindian rare earths | Australian Markets

Rare earths developer Lindian Resources is juggling a slew of financing proposals from main African and European industrial and investment banks to fund construction of its world-class Kangankunde laborious rock rare earths project in Malawi.

The company says it’s using a wave of financial momentum, with a number of funding proposals to bankroll Kangankunde’s Stage 1 development. One standout non-binding proposal includes a US$30 million loan from Ecobank Malawi and one other proposal includes a US$30M – US$40M secured debt/equity bond from a main European investment bank.

Another US$50M proposal from Gerald group dates back to final December and the company additionally has a quantity of offtake prepayment proposals from quite a few commodity merchants.

The latest offer from Malawi’s Ecobank consists of a five-year pledge to act as mandated lead financier, with different industrial banks apparently circling for a syndicated deal. The help of Ecobank underscores Malawi’s rising standing as a growing mining jurisdiction for international investment and demanding minerals provide.

A number one European investment bank has tossed its hat within the ring with a Nordic-style bond, concentrating on a 60:40 debt-to-equity cut up for up to US$40M over five-years. Lindian says the bond is tailor made for upstream tasks like Kangankunde, promising flexibility for construction prices.

The company’s current US$50M non-binding time period sheet with Gerald Group, to lock up the remaining 60 per cent of monazite product for a full offtake proper to Stage 1, stays a strong contender too. Lindian’s board will now sift via all of the proposals with a view to locking one in for its remaining investment choice.

It is extraordinarily pleasing to see the standard of the businesses reaching out to enquire about Lindian, its tasks, merchandise, timelines and partnership potential as we proceed to advance the project ahead.

An optimised feasibility examine for Kangankunde can also be nearing completion and is set to wrap up in late June and can look to construct on final yr’s blockbuster numbers.

The project reveals round 23.7-million-tonnes in reserve grading a weighty 2.9 per cent whole rare earth oxides (TREO), putting it in rarified air on the worldwide rare earths stage.

Stage 1 is set to churn out 15,300t of premium 55 per cent TREO monazite focus yearly for a large 45 years, pegging a post-tax web current worth at Kangankunde of some US$555 million, regardless of significantly depressed rare earths costs since 2023 that many imagine will ultimately transfer skywards.

At a lean US$40 million pre-production capex and a miniscule US$2.92/kg TREO working value, the project is predicted to pay for itself in beneath two years in accordance to Lindian.

Management says the preconstruction works are actually in full swing on the ground in Malawi together with the company’s 5km entry street that’s anticipated to be delivered forward of schedule and beneath price range. That street will permit construction crews to deal with run-of-mine (ROM) pad earthworks, storage amenities and security yards, shaving treasured time and prices off the schedule.

With 40 per cent of Stage 1 manufacturing already locked in beneath binding offtake phrases with Gerald Group, manufacturing is slated for mid-2026, with the bidding course of heating up for the remaining 60 per cent.

Management additionally notes that three way partnership discussions within the US and CIS international locations are gaining traction, aligning with Presidential govt orders and Western efforts to diversify crucial mineral provide chains.

With a treasure trove of financing choices, construction milestones and a low-cost foothold within the international rare earths market, Lindian is charging in the direction of changing into a international rare earths provider in 2026. Kangankunde’s sky-high grade and dirt-cheap prices make it a first-class different to Chinese rare earths manufacturing because the West clamours for strategic rare earths different suppliers .

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