Lindian Resources has completed a two-tranche placement, securing A$91.5m ($59.2m) in commitments from institutional investors to develop the Kangankunde rare earths project in Malawi.
The company’s board has approved the final investment decision for the construction of stage one of the Kangankunde project, following the successful placement.
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The placement, set at A$0.21 per share, represents a 6.7% discount to the closing price on 15 August 2025.
The proceeds will not only fund the Kangankunde project to completion but also facilitate the acquisition of full ownership and support stage two expansion efforts.
Lindian Resources executive chairman Robert Martin said: “We are delighted with the support we have received from new domestic and international institutional investors for this placement, with demand significantly in excess of funds sought.
“To be able to declare the final investment decision sets Lindian on the pathway to being the world’s next rare earths producer, a truly remarkable position for your company to be in. We now have a very clear, fully funded and unencumbered pathway to first production.
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By GlobalData“The company now fully funded, [we] will accelerate our already well-advanced pathways to production including finalising major contracts, placing orders for long lead time items, awarding services contracts and fast-tracking our larger Stage 2 studies.”
The Kangankunde project, with a lifespan of 45 years, is expected to produce high-grade rare earth oxide (REO) with low radionuclides.
Stage one involves a conventional open-pit mine and a processing plant with a production target of 15,300 tonnes per annum (tpa) of monazite concentrate.
First production from stage one is expected in the fourth quarter of calendar year 2026 (Q4 2026).
Stage two focuses on expanding production capacity and leveraging the recent mining licence area expansion from 900 hectares (ha) to 2,500ha.
The feasibility study suggests a potential increase in production to 50,000tpa, with further expansion studies planned.
Supporting the expansion is Lindian’s strategic partnership with Iluka Resources, which includes a $20m construction loan for stage one development and a 15-year offtake agreement for 90,000t of monazite concentrate feed for its Eneabba refinery in Western Australia.
The Eneabba refinery, partly funded by the Australian Government, is set to be Australia’s first fully integrated rare earths refinery, with commissioning expected in 2027 in line with the Kangankunde project’s timeline. The agreement with Iluka also includes a right of first refusal for stage two production.
