Lindian Resources has announced the signing of a non-binding term sheet with Gerald Group for a $50m funding package.
This funding is intended to support the development of the Kangankunde rare earths project in Malawi, which is poised to become a significant player in the global rare earths market.
The capital will be allocated towards the estimated $40m capex for stage one development and operational costs for creating an initial run-of-mine stockpile.
The proposed funding by Gerald Group will comprise a mix of equity, convertible instruments and loan facilities. These loans will be partially repaid through the supply of monazite concentrate from the Kangankunde project.
Gerald Group is set to receive full offtake rights for monazite concentrate from stage one under an agreement signed last year, with additional rights over stage two production.
Moreover, upon the initial funding tranche, Gerald will have the right to appoint directors to Lindian's Malawi subsidiary boards and main board. Lindian is actively negotiating the binding terms and finalising Gerald's due diligence process.
Lindian chief executive officer Alwyn Vorster said: “We are pleased that a globally recognised metals trading group, Gerald Metals, is working with Lindian towards accelerating the development of the world-class Kangankunde Rare Earths Project.
“The proposed funding facility and offtake agreement for monazite concentrate will be key enablers to advance Kangankunde’s construction activities in the first half of 2025 [H1 2025]. We look forward to working with Gerald to expedite the finalisation of the binding arrangements as quickly as possible.”
The Kangankunde rare earths project is a cornerstone asset for Lindian, boasting one of the world's largest deposits with high-grade rare earth oxides and minimal impurities. The project's feasibility study on stage one development highlighted its potential for low capital and operational costs compared with other global rare earth projects.
With key licences and government support in place, Lindian aims to start construction in H1 2025, following completion of the feasibility study.
