Lindian Resources Secures A$91.5M to Fully Fund Kangankunde Rare Earths Project
Lindian Resources has won shareholder approval for a A$91.5 million institutional placement, fully financing its Kangankunde Rare Earths Project through to first production targeted in late 2026.
- A$91.5 million two-tranche institutional placement approved
- 435.7 million new shares issued at A$0.21, a 48% premium to VWAP
- Funds fully cover Stage 1 capital costs and Stage 2 expansion engineering
- Placement proceeds to increase ownership of Kangankunde to 100%
- First production on track for Q4 2026 with early construction underway
Institutional Backing Secures Major Capital Raise
Lindian Resources Limited (ASX – LIN) has successfully secured shareholder approval at an Extraordinary General Meeting held on 8 September 2025 for a substantial A$91.5 million institutional placement. This two-tranche capital raise, involving the issuance of 435.7 million new shares priced at A$0.21 each, represents a significant 48% premium to the 20-day volume weighted average price, underscoring strong investor confidence in Lindian’s rare earths assets.
Funding the Kangankunde Rare Earths Project to Production
The proceeds from this placement fully fund the Kangankunde Rare Earths Project in Malawi through to first production, targeted for the fourth quarter of calendar year 2026. The capital injection covers the approximately US$40 million Stage 1 development costs, enabling Lindian to advance key site works already underway. Additionally, funds will support the completion of engineering for the Stage 2 expansion and the phased rollout of infrastructure necessary to scale operations.
Strategic Ownership and Operational Milestones
Beyond financing construction, the placement proceeds will also be used to increase Lindian’s ownership of the Kangankunde project to 100%, consolidating control over this world-class asset. The project is positioned to produce a premium monazite concentrate with a high total rare earth oxides grade and low operating costs, placing it among the lowest cost quartile globally. This strategic move aligns with Lindian’s ambition to become a globally significant critical minerals producer.
Governance and Market Confidence
The shareholder meeting ratified the prior tranche 1 share issue and approved tranche 2, with resolutions passed by a clear majority. The strong demand for the placement, significantly exceeding the funds sought, reflects robust institutional interest and confidence in Lindian’s growth trajectory. The company benefits from solid government and community support in Malawi, as well as a strategic partnership with Iluka Resources Ltd, further underpinning its development plans.
Looking Ahead
With funding secured and construction progressing, Lindian is on track to deliver first production from Kangankunde by late 2026. The company’s focus will now shift to executing its development milestones and advancing Stage 2 expansion plans, which promise to enhance production capacity and long-term value.
Bottom Line?
Lindian’s successful capital raise marks a pivotal step towards rare earths production, setting the stage for operational milestones and market impact.
Questions in the middle?
- How will Lindian’s increased ownership of Kangankunde affect future project governance and returns?
- What are the key risks that could delay the targeted Q4 2026 production start?
- How might fluctuations in rare earth prices, especially neodymium and praseodymium, influence project economics?
