Third Tranche, page-18

Listed rare earths and bauxite explorer Lindian Resources, whose shares are up 80 per cent this year, launched a $30 million raising on Monday morning.

Lindian Resources’ shares are up 80 per cent this year.

The offer was priced at 33¢ a share, which was a 20.5 per cent discount to the last close and 12.4 per cent lower than the 20-day volume weighted average price.

Term sheets sent to potential investors said Lindian would use the proceeds to the come good on the third tranche of the $US10 million ($15 million) payment for its acquisition of Kangankunde rare earths project in Malawi announced a year ago.

The raising also include funding for construction and working capital, which would take the deal size to more than $20 million.

The company is due to begin civil works on a processing plant for Kangankunde in November, where it’s aiming for a 440,000 tonnes per annum initial throughput.

Euroz Hartleys was the sole lead manager and bookrunner on the raising.