Lindian Raises A$91.5M, Greenlights Kangankunde Rare Earths Mine Construction

Capital Raise and Final Investment Decision

Lindian Resources Limited (ASX, LIN) has successfully secured A$91.5 million through a two-tranche institutional placement priced at A$0.21 per share, reflecting strong demand well beyond the funds sought. This capital injection has paved the way for the company’s board to approve the Final Investment Decision (FID) for the construction of Stage 1 of the Kangankunde Rare Earths Project in Malawi.

The placement was notably supported by both Australian and offshore institutional investors, with the issue price representing a discount to the recent closing price but a premium to the volume-weighted average price over recent trading periods. This robust backing underscores market confidence in Lindian’s rare earths venture.

Project Overview and Production Outlook

Kangankunde is a high-grade, long-life rare earths mine with a 45-year life of mine based on ore reserves. Stage 1 will focus on open-pit mining and processing to produce approximately 15,300 tonnes per annum of premium monazite concentrate with a 55% total rare earth oxides grade. The project economics are compelling, boasting a pre-tax net present value of A$1.18 billion and an internal rate of return of 99%, with first production targeted for the fourth quarter of 2026.

With all key permits in place and initial site works underway, the project is fully funded through Stage 1 completion. The capital cost of around US$40 million is covered by the recent placement and strategic partnerships.

Strategic Partnership with Iluka Resources

Lindian’s partnership with Iluka Resources Ltd is a cornerstone of the project’s financing and commercial strategy. Iluka has committed a US$20 million five-year construction loan and entered into a binding 15-year offtake agreement for 90,000 tonnes of monazite concentrate, providing revenue certainty with pricing floors above production costs.

Iluka also holds a right of first refusal for Stage 2 production expansion, which could see output increase to 50,000 tonnes per annum. This partnership aligns Lindian with a major player in the rare earths sector and supports the company’s ambitions for growth.

Stage 2 Expansion and Future Growth

Recently approved mining licence expansions have increased the project’s footprint from 900 to 2,500 hectares, enabling a significant scale-up in production capacity. Lindian plans to commission an expansion feasibility study and has begun engineering works to design a modular production plan that builds on Stage 1 infrastructure.

Funds from the placement will also accelerate Stage 2 development, including infrastructure rollout and engineering, positioning Lindian to capitalize on the growing demand for rare earth elements critical to clean energy technologies and advanced manufacturing.

Market Position and Outlook

Executive Chairman Robert Martin highlighted the strong institutional support and the company’s clear pathway to becoming a globally significant rare earths producer. With a fully funded project and strategic partnerships in place, Lindian is poised to deliver on its production targets and expand its footprint in the critical minerals sector.

As the rare earths market continues to evolve amid geopolitical and supply chain considerations, Lindian’s progress at Kangankunde will be closely watched by investors and industry stakeholders alike.