Lindian Resources has signed a non-binding term sheet with Gerald Group for a $50 million funding package to accelerate the development of the Kangankunde Rare Earths Project in Malawi. This project is poised to become a significant contributor to the global rare earths market.
The funding will cover the estimated $40 million capital expenditure for the stage one development of Kangankunde and operational costs for creating an initial run-of-mine stockpile.
Gerald Group’s funding package will include equity, convertible instruments, and loan facilities, with repayment partly through the supply of monazite concentrate produced by the project.
Under an agreement signed last year, Gerald Group will retain full offtake rights to monazite concentrate from stage one and additional rights for stage two production.
Upon the release of the first funding tranche, Gerald Group will gain the right to appoint directors to Lindian’s boards in Malawi and its main board. Lindian is currently negotiating binding terms and completing Gerald’s due diligence process.
Lindian CEO Alwyn Vorster commented:
“We are pleased that a globally recognized metals trading group, Gerald Metals, is working with Lindian to accelerate the development of the world-class Kangankunde Rare Earths Project.
The proposed funding facility and offtake agreement will be crucial in advancing Kangankunde’s construction activities in the first half of 2025. We look forward to finalizing the binding arrangements as quickly as possible.”
Kangankunde is a cornerstone asset for Lindian, hosting one of the world’s largest high-grade rare earth oxide deposits with minimal impurities.
Its feasibility study highlights the potential for low capital and operational costs, positioning it competitively among global rare earth projects.
With key licenses and strong government backing in place, Lindian is targeting the start of construction in H1 2025 upon completing the feasibility study and finalizing funding arrangements.
This partnership with Gerald Group marks a significant step forward for Kangankunde, enhancing Lindian’s ability to deliver a critical resource for the global green energy and technology sectors.
