Lindian Secures $31m Iluka Loan and $91.5m Placement to Fund Kangankunde

Strategic Milestone for Kangankunde

Lindian Resources Limited has reached a pivotal moment with the approval of the Final Investment Decision (FID) for its Kangankunde Rare Earths Project in Malawi. This decision signals the company’s commitment to advancing a world-class rare earths asset, fully funded through to first production. The project boasts robust economics, a low-cost operating profile, and a 45-year mine life, positioning Lindian as a significant player in the critical minerals sector.

Capital Raising and Funding Structure

To underpin the development, Lindian is undertaking a two-tranche institutional placement to raise A$91.5 million at A$0.21 per share, representing a premium to recent volume-weighted average prices. The raise will fund the completion of Stage 1, increase Lindian’s ownership to 100%, support working capital, and finance early works for the Stage 2 expansion. Complementing this equity raise, the company has secured a US$20 million (~A$31 million) term loan facility from Iluka Resources, a globally renowned critical minerals company, providing flexible debt funding without financial covenants or attached equity instruments.

Strategic Partnership with Iluka Resources

Lindian’s long-term strategic partnership with Iluka Resources is a cornerstone of the project’s commercial framework. The agreement includes a 15-year initial offtake for 90,000 tonnes of monazite concentrate, with a right of first refusal for an additional 15 years. This concentrate will feed Iluka’s Eneabba Rare Earths Refinery in Western Australia, supported by Australian government funding. Pricing is linked to realized NdPr oxide prices with an upside mechanism and downside protection, ensuring a floor price above Kangankunde’s expected production costs. The partnership also provides a pathway for Iluka to participate in Stage 2 expansion funding and offtake, enhancing project scale and value.

Project Development and Timeline

Pre-construction activities are well underway, including site access road completion and non-process infrastructure development. Lindian is progressing discussions with preferred contractors for mining and infrastructure, with contract awards expected imminently. The project timeline anticipates 15 months from FID to first production, with a focus on delivering a low-cost, high-grade monazite concentrate. The company is also advancing downstream test work with ANSTO to develop mixed rare earth carbonate products, aiming to capture greater value along the supply chain.

Broader Portfolio and Market Context

Beyond Kangankunde, Lindian holds 100% ownership of Tier 1 bauxite projects in Guinea and Tanzania, further diversifying its critical minerals portfolio. The rare earths market is experiencing strong demand driven by the electrification of transport and renewable energy technologies, with NdPr magnets at the core of this growth. Kangankunde’s low capital intensity, robust feasibility results, and strategic partnerships position Lindian to capitalize on these trends amid global supply chain shifts.

Risks and Considerations

While the project is fully funded and advancing, risks remain including market price volatility, development execution, metallurgical processing, and geopolitical factors. The Stage 2 expansion is subject to further feasibility and funding decisions. Lindian continues to engage with local communities and governments to ensure sustainable development and regulatory compliance.