Lindian locks in $91.5M to greenlight Malawi rare | Australian Markets

Lindian Resources’ share price has jumped out of the gates immediately on heavy turnover and hit one other contemporary high of 26.5 cents a share, after the company banked $91.5 million from an oversubscribed jumbo placement.

The new funding clears the decks for the company to begin full-scale construction of its flagship Kangankunde rare earths project in Malawi.

The capital raising was struck at 21c a share from the difficulty of 435.7 million shares unfold over two tranches. Lindian stated the offer drew a stampede of assist from native and worldwide establishments and that bids flooded in effectively above the goal.

Investor demand was so robust that Lindian solely had to trim 6.7 per cent off its final close to seal the deal. Against latest trading averages, the position was even sweeter, coming in at a 12.5 per cent premium to the five-day mark and a whopping 48 per cent above the 20-day average.

Now the money has been secured, the board has shortly moved to log out on a closing investment resolution, which can enable the company to break ground on stage one of Kangankunde. It has locked in first manufacturing for the fourth quarter of 2026.

Declaring the ultimate investment resolution units Lindian on the pathway to being the world’s subsequent rare earths producer, a really exceptional place for the company to be in. We now have a very clear, totally funded and unencumbered route to first manufacturing.

The project hosts a globally important deposit with a 45-year mine life, ore reserves grading 2.9 per cent complete rare earth oxides (TREO) and low radioactive ranges – a mixture onerous to discover in the rare earths world.

Stage one construction will see Lindian construct a easy open-pit mine coupled with a easy gravity and magnetic processing plant succesful of churning out about 15,300 tonnes per 12 months of premium monazite focus grading 55 per cent TREO.

Even with rare earths costs caught in the doldrums, Lindian’s numbers shine – its feasibility examine pegs Kangankunde at a pre-tax web current worth of US$794 million (A$1.225 billion) with a blistering 99 per cent inner fee of return and payback in barely a 12 months.

Lindian says it’s already wanting effectively past its first pour. Hot on the heels of a mining licence enlargement from 900 hectares to 2500ha, management is eyeing a stage two development that might carry output to as a lot as 50,000t a 12 months. Engineering research are already underway to design a modular enlargement, and a chunk of the position proceeds have been earmarked to fast-track this growth pipeline.

ASX heavyweight Iluka Resources has backed the company by locking in a 15-year offtake deal for six,000t a 12 months of focus from Kangankunde to feed its Eneabba refinery in Western Australia. The settlement additionally offers Lindian assured income, with a flooring price set above its manufacturing prices, cementing rock-solid economics from day one.

Iluka has additional sweetened the deal with a US$20 million (A$31 million) loan to fast-track stage one construction and grabbed first rights over stage two manufacturing of up to 25,000t a 12 months for 15 years. In return, the mining main should cowl half of Lindian’s enlargement prices and agree to new business phrases, similar to pricing. If it takes up the option, Iluka may secure up to 31,000t of monazite focus a 12 months.

Iluka’s totally built-in Eneabba refinery, now underneath construction, is a first for Australia and has been largely funded by a $1.65 billion non-recourse loan from the Federal Government’s $2 billion vital minerals facility.

For Lindian, the items are falling neatly into place. With funding in the bank, Iluka at its facet and one of the world’s best undeveloped rare earth deposits prepared to crack open, the company has vaulted from hopeful explorer to totally funded developer in report time.

All eyes are actually on Kangankunde because the countdown begins to 2026, when Lindian goals to be part of the elite ranks of the world’s rare earths producers.

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