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- Lindian Resources (LIN) receives commitments to raise $1 million through a share placement
- Sophisticated and professional investors, as well as existing shareholders, supported the raise which will see over 33 million shares issued at 3 cents each
- Of these shares, 10 million will be issued to Kabunga Holdings, subject to shareholder approval, to repay the principal outstanding on a $300,000 term loan facility
- The funds raised will assist Lindian in paying costs associated with the Kangankunde Rare Earths Project in Malawi and the ongoing dispute in relation to that project
- Shares have ended the day trading 6.67 per cent higher at 3.2 cents
Lindian Resources (LIN) has received commitments to raise $1 million through a share placement.
The company said sophisticated and professional investors as well as existing shareholders have supported the raise which will see over 33 million shares issued at 3 cents each.
Of these shares, 10 million will be issued to Kabunga Holdings, subject to shareholder approval, to repay the principal outstanding on a $300,000 term loan facility entered into on October 21.
The companies have reached an agreement to extend the maturity date of the loan facility until shareholder approval is gained, which is anticipated to be on February 1st.
Once paid, Lindian said it will be debt free and well-funded, given its low monthly cash
burn rate and “modest” projected project expenditure.
The funds raised are set towards advancing the company’s projects in Guinea and Tanzania.
Moreover, the extra capital will assist Lindian in paying costs associated with the Kangankunde Rare Earths Project in Malawi and the ongoing dispute in relation to that project.
Earlier this month the Malawi Supreme Court of Appeal adjourned an appeal hearing, scheduled for December 8, in relation to an exclusive option agreement for the project and a dispute against Michael Saner (since deceased) and Rift Valley Resource Developments.
According to the company, the Court is yet to schedule a revised date for the appeals hearing.
Lindian is hoping to achieve an out-of-court settlement based on sensible commercial terms with respect to the project.
Allotment of the shares is scheduled for December 3 with trading to commence on December 6.
Shares were trading 6.67 per cent higher at 3.2 cents at market close.
