Rare earths developer Lindian Resources is juggling a slew of financing proposals from leading African and European commercial and investment banks to fund construction of its world-class Kangankunde hard rock rare earths project in Malawi.
The company says it is riding a wave of financial momentum, with multiple funding proposals to bankroll Kangankunde’s Stage 1 development. One standout non-binding proposal involves a US$30 million loan from Ecobank Malawi and another proposal involves a US$30M – US$40M secured debt/equity bond from a leading European investment bank.
Another US$50M proposal from Gerald group dates back to last December and the company also has a number of offtake prepayment proposals from numerous commodity traders.
The latest offer from Malawi’s Ecobank includes a five-year pledge to act as mandated lead financier, with other commercial banks apparently circling for a syndicated deal. The support of Ecobank underscores Malawi’s rising status as a growing mining jurisdiction for global investment and critical minerals supply.
A leading European investment bank has tossed its hat in the ring with a Nordic-style bond, targeting a 60:40 debt-to-equity split for up to US$40M over five-years. Lindian says the bond is tailor made for upstream projects like Kangankunde, promising flexibility for construction costs.
LRV Price at posting:
68.0¢ Sentiment: Hold Disclosure: Held
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