Lindian Resources (ASX:LIN) has confirmed it has completed a $16 million placement of some 73.45 million fully paid ordinary shares at $0.21 per share this morning (9 December).
The capital raise also has attaching options of 36.73 million ($0.30 options expiring 3 years from issue) to new and existing sophisticated investors.
As reported, another 2.7 million shares and 1.4 million options are to be issued to Executive Chairman Asimwe Kabunga, subject to shareholder approval, as part of the placement.
Funds raised will be used to make the second US$7.5 million acquisition payment to Rift Valley Resource Developments that will see Lindian progressively acquire 100% of the globally significant Kangankunde Rare Earths Project and project development works.
Lindian is now well capitalised and is aggressively ramping up mine development drilling and project development engineering works at Kangankunde.
The company is progressing a drill program, as well as community and government liaison activities which are also ongoing. As advised, first assays from the drill program are likely to be released later this month.
Addressing the equity raise, Executive Chairman Asimwe Kabunga commented: “Now that this Placement is completed, we are very well-capitalised to unlock Kangankunde’s value through what will be the most comprehensive mine development drilling and engineering works program in the history of the project.
“The macro environment for critical minerals, particularly rare earths, is very favourable, and Lindian is in a very unique position with an asset that we are sure will deliver in terms of grade and scale”
The macro environment for critical minerals, particularly rare earths, is very favourable, and Lindian is in a very unique position with an asset that we are sure will deliver in terms of grade and scale. We look forward to updating shareholders next week on progress.”
As shareholder briefing will be held on 13 December 11am Australian Eastern Standard Time (AEST).
Lindian Resources is progressively acquiring 100% of Malawian registered Rift Valley Resource Developments and its 100% owned title to Exploration Licence EPL0514/18R and Mining Licence MML0290/22 issued under the Malawi Mines and Minerals Act 2018.
The project has an Environmental and Social Impact Assessment Licence No.2:10:16 issued under the Malawi Environmental Management Act No. 19 of 2017.
The Kangankunde Project has been subject to significant historic exploration by Lonrho Plc in the 1970s and the French geoscience Bureau de Récherches Géologiques et Minières in the 1990s. The project has an underground adit (a horizontal drive with cross cuts extending at least 300 metre underground) and exploration sampling by trenching and drilling has identified significant non-radioactive monazite mineralisation over a footprint of 800m by 800m.
Write to Adam Orlando at Mining.com.au
Images: iStock
