Wedoany.com Report-Aug. 22, Lindian Resources has successfully completed a two-tranche placement, raising A$91.5 million ($59.2 million) from institutional investors to advance the development of the Kangankunde rare earths project in Malawi. The placement was priced at A$0.21 per share, a 6.7% discount to the closing price on 15 August 2025. Following this fundraising, the company’s board approved the final investment decision for stage one construction of the project.

The Kangankunde project, with a lifespan of 45 years, is expected to produce high-grade REO with low radionuclides.

The funds will support the full completion of Kangankunde’s initial phase, secure full ownership, and enable stage two expansion plans. Lindian Resources executive chairman Robert Martin said: “We are delighted with the support we have received from new domestic and international institutional investors for this placement, with demand significantly in excess of funds sought. To be able to declare the final investment decision sets Lindian on the pathway to being the world’s next rare earths producer, a truly remarkable position for your company to be in. We now have a very clear, fully funded and unencumbered pathway to first production.”

Martin added: “The company now fully funded, [we] will accelerate our already well-advanced pathways to production including finalising major contracts, placing orders for long lead time items, awarding services contracts and fast-tracking our larger Stage 2 studies.”

The Kangankunde project has an estimated mine life of 45 years and is designed to produce high-grade rare earth oxide (REO) with low radionuclides. Stage one includes a conventional open-pit mine and processing plant targeting an annual production of 15,300 tonnes of monazite concentrate. First output is scheduled for the fourth quarter of 2026.

Stage two aims to increase capacity following the expansion of the project’s mining licence area from 900 hectares to 2,500 hectares. Feasibility studies indicate potential output of up to 50,000 tonnes per year, with further studies under way to assess additional growth opportunities.

Supporting the development is Lindian’s partnership with Iluka Resources, which has provided a $20 million construction loan for stage one and secured a 15-year offtake agreement for 90,000 tonnes of monazite concentrate feed for its Eneabba refinery in Western Australia. The agreement also gives Iluka the right of first refusal for stage two production.

The Eneabba refinery, partly supported by Australian Government funding, is expected to be the country’s first fully integrated rare earths refinery. Commissioning is planned for 2027, aligning with the Kangankunde project’s development timeline.

Through this placement, Lindian has secured a clear path to advance one of the industry’s long-term projects, combining financing, partnerships, and regulatory support. The combination of a large resource base, strong investor demand, and strategic agreements positions Kangankunde as a significant contributor to the rare earths supply chain, with stage one establishing initial production capacity and stage two providing expansion potential for decades ahead.