Australian miner Lindian Resources has secured A$35m ($23.5m) in binding commitments from institutional investors and current and new sophisticated investors in a share placement, to fund the acquisition of the Kangankunde Rare Earths Project in Malawi.

The placement involves the issuance of 106.06 million shares at 33 cents per share to investors.

Lindian will issue the shares under its existing capacity and do not require shareholder approval.

In a press statement, Lindian said: “The participants in what was a very heavily bid Placement recognise the potential of the company’s globally significant Kangankunde Rare Earths Project in Malawi where extensive mine development drilling has demonstrated that Kangankunde has substantial rare earths grade and significant geometric size, substantial depth potential, a high NdPr ratio and non-radioactive mineralisation.”

The funds will be used by the company for the payment of a $10m final tranche for the acquisition of Rift Valley Resource Developments, which owns the Kangankunde project.

Lindian said the final $10m tranche payment is not due until the commercial production start or August 2027, whichever is earlier.

The funds from the placement will also be used by Lindian for the construction of the stage one processing plant, which is scheduled to be commissioned in late 2024.

Lindian CEO Alistair Stephens said: “With a very strong cash position, no debt and with the Tranche 3 $10m acquisition payment secured, Lindian is in exceptionally good shape and can now capitalise on the delivery of the multiple work streams we have underway.”

Euroz Hartleys served as the placement’s lead manager and book runner.