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Highlights
Lindian Resources progresses with construction and financing for its Kangankunde Rare Earths Project.
Financing proposals under review include a non-binding loan facility and a bond offer.
Pre-construction activities are ahead of schedule and under budget.
Lindian Resources Ltd is advancing the development of its flagship Kangankunde Rare Earths Project, located in Malawi. With the stock listed on the (ASX:LIN) ASX 200 and traded on the OTC under LINIF, the company is working to meet several important construction and financing milestones that will pave the way for production to begin in 2026. The rare earths sector has seen increasing demand, and Lindian is positioning itself as a key player within this space, especially with its focus on rare earth minerals critical to the global supply chain.
Progressing with Financing Offers
Lindian Resources is actively evaluating various financing offers to support the Kangankunde project. These offers include a non-binding US$30 million term loan facility from Ecobank Malawi, along with an indicative senior secured bond offer from a well-established European investment bank. Lindian's CFO, Teck Lim, emphasized that the financing proposals reflect the strong financial standing of the Kangankunde project. He highlighted that despite fluctuating prices for rare earth elements, the project's fundamentals remain sound and continue to attract strong interest from financiers.
The company is also in discussions for offtake prepayment finance proposals with commodity traders and end users. These discussions are running parallel to a previously announced term sheet involving a major global trading entity, Gerald Group. Lindian’s leadership is working carefully to evaluate all available funding options to ensure that the project is supported by the most suitable and sustainable financial solutions.
Feasibility and Construction Advancements
Lindian Resources has made significant progress with its pre-construction activities, which remain both ahead of schedule and under budget. A notable aspect of the development is the early-stage infrastructure development, including work on the site access road, awarded to the European contractor Mota Engil.
In addition, the design and construct contract process is well advanced, and the company has shortlisted three contractors for the project. Lindian expects to award the contract soon after completing final site inspections. The project team is also working to finalize the Kangankunde Mining Development Agreement with the Malawian government, and high-level discussions continue to progress smoothly.
Optimizing Feasibility and Downstream Opportunities
Lindian is moving forward with an optimized feasibility study, which is set to be completed by mid-year. This study will aim to finalize both capital and operating costs while also optimizing the plant design based on recent test work. It will also assess the logistics and tailings management solutions, which could include dry stack tailings and circular economy applications.
Furthermore, Lindian is exploring opportunities for downstream processing, including potential joint ventures with partners in the US and the Commonwealth of Independent States. These partnerships could allow for the production of Mixed Rare Earth Carbonate from the high-grade monazite feed produced at Kangankunde.
The project’s robust feasibility metrics support its strong economic fundamentals, with a significant life of mine and production of high-quality rare earth monazite concentrate, while maintaining low operating costs. Moreover, 40% of Stage 1 production is already under contract, and negotiations for the remaining portion of production are ongoing.
Lindian Resources Ltd's ongoing efforts to develop the Kangankunde Rare Earths Project underscore the company's commitment to advancing the rare earth sector and establishing itself as a globally significant producer of rare earth elements.
