Lindian Resources has raised AU$100 million to accelerate production at its Kangankunde rare earths project in Malawi.
Lindian secured commitments from investors for a placement of 133.33 million new shares at a price of 75 cents per share.
The capital injection will be used for stage 2 of the Kangankunde expansion. This phase targets an additional 100,000 tonnes per annum (tpa) of processing capacity. Funds will be immediately deployed to secure long-lead equipment and mining fleets, reducing execution risks for the 2026 expansion timeline.
The funds will also be used to reach project completion for stage 1, as it removes the requirement for drawdown of the Iluka debt facility of AU$32 million.
Another portion of capital injection is earmarked for the SARECO mixed rare earth carbonate (MREC) facility.
By integrating this downstream processing capability, Lindian is transitioning to a dual-product strategy.
The company will supply its own concentrate to the facility to produce high-grade carbonate, capturing significantly higher margins than selling raw concentrate alone.
This targeted allocation of capital is expected to allow the company to start both the Kangankunde mine and SARECO MREC facility free from debt and encumbrances, reduce execution risk, preserve development timelines and support the company’s transition into its next phase of growth, commissioning and ramp-up.
Lindian Executive Chairman Robert Martin said: “Stage 1 at Kangankunde and our SARECO MREC facility are both fully funded without the need for any debt drawdowns to reach first cash flows allowing us to be in production at both operations debt free and with a clean balance sheet.
“This placement allows us to move faster, execute with greater certainty and unlock the next phase of growth across both upstream and downstream operations.”
Both Kangankunde stage 1 and the SARECO facility are targeted to be operational by the final quarter of 2026.
The company will make a final investment decision for stage 2 of Kangankunde by December.
