Lindian Resources has secured $9 million in funding for its Kangankunde rare earths project, with chairman Asimwe Kabunga tipping in $500,000 as the company closes in on its processing plant construction.
The funds come via a share placement at a near 10.5 per cent premium on the company’s past closing price. The balance of the funding has come from two new investors, who have poured in $7.5 million and $1 million respectively. It will see about 32.7 million shares added to the register.
The money has already been earmarked by Lindian for the acquisition of key equipment for its planned stage-one processing plant, which is scheduled to start operating next year.
The company says it has also been hosting several other interested parties from the rare earths industry with a view to sealing offtake agreements and further funding down the line.
Mr Kabunga said: “I am also pleased to confirm that we are making very good headway sourcing capital to fully fund the planned Stage 1 concentrate processing facility through to first revenue, as well as project acquisition costs and predevelopment works for mine development.…We are being diligent and considered to ensure that we secure the most non-dilutive deal for shareholders and the best outcome for all stakeholders, most importantly the local community and the government of Malawi.”
The company is currently in the final stages of phase one of its 12,500m resource definition drill-out, including 10,000m of RC drilling and a further 2500m of diamond drilling to test the mineralisation to a depth of 300m. Results are still pending from about 45 holes in an area which has historically produced the highest grades.
The second phase of the drill campaign is due to kick off after the Easter break and will include reaching into two exceptionally-deep, 1km-long holes in a plan designed to test the continuity of mineralisation below 300m.
Kangankunde is considered one of the world’s biggest rare earths operations outside China and hosts an outdated resource of 2.53 million tonnes grading 4.24 per cent total rare earths oxide for 107,000 tonnes of contained rare earths when using a cut-off grade of 3.5 per cent. It is a carbonatite-hosted system and notably, the mineralisation is exposed at surface and still open at depth.
Lindian has consistently produced wide drill hits at the site with the majority of holes beginning and ending in mineralisation. In January, the company produced a massive 300m section at 2.31 per cent total rare earth oxides from surface.
The ratio of the highly sought-after industrial magnet rare earths, neodymium and praseodymium (NdPr), in the total concentrate at the project is about 19 per cent and a mining licence has already been secured for the site. The ratio of NdPr in the latest results came in at about 21 per cent. The explorer says all assays show very low levels of the nuisance radioactive materials, uranium and thorium.
With its saddle bags stuffed with cash, Lindian can approach its next stage of development with confidence - and with good reason. The company has been nailing big intersections with serious grades and its current share price of 24 cents is a galaxy away from the 2.7c it was trading at in May last year.
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By Steve Kaless
