- Lindian Resources (LIN) taps investors for $35 million through a “well-supported” share placement
- The placement comprises the issuance of 106.06 million shares at 33 cents apiece to institutional investors, as well as new and existing sophisticated investors
- Funds raised will go toward facilitating the $14.8 million third tranche payment for the company’s acquisition of Rift Valley Resource Developments
- Funds will also go toward the construction of Lindian’s stage one processing plant, with commissioning and operations planned for late 2024
- LIN shares fall are down 14.5 per cent, trading at 35.5 cents at 12:37 pm AEST
Lindian Resources (LIN) has tapped investors for $35 million through a “well-supported” share placement.
The placement comprises the issuance of 106.06 million shares at 33 cents apiece to institutional investors, as well as new and existing sophisticated investors.
The fresh funds raised will go toward facilitating the US$10 million (A$14.8 million) third tranche payment for the company’s acquisition of Rift Valley Resource Developments.
The final tranche payment is not due until the commencement of commercial production, aimed for August 2027 or earlier.
Meanwhile, the funds will also go toward the construction of Lindian’s stage one processing plant, with commissioning and operations planned for late 2024.
“The considerable interest received is clear recognition that Kangankunde is a globally significant rare earths project of considerable scale and grade, and the potential for Lindian to be a major supplier of neodymium and praseodymium to the global economy in the near future,” LIN Chair Asimwe Kabunga said.
“The funds from this placement, together with our existing cash reserves and potential funding from future option conversions, put Lindian in its best-ever financial position and ensure that we are now well-funded to rapidly advance into construction.”
LIN announced that future offtake agreements would be determined once a maiden mineral resource estimate is published.
Completion of the placement is expected to occur by July 19, 2023, and trading of the new shares is scheduled for the following business day.
LIN shares were down 14.5 per cent, trading at 35.5 cents at 12:37 pm AEST.