Lindian, Gerald Group ink non-binding term sheet for Kangankunde rare earths project
Lindian Resources and Gerald Group have inked a non-binding term sheet for Kangankunde rare earths project Malawi.
The term sheet offers a $50m funding package for the project which is positioned to become a significant global player in the rare earths market. $40 million will cover capital expenditures (capex) for stage one development. The remaining funds will support operational costs and the creation of an initial run-of-mine stockpile.
Structure of funding included a mix of equity, convertible instruments, and loan facilities. Loan repayment will be partially offset by the supply of monazite concentrate from Kangankunde. Gerald Group retains exclusive offtake rights for monazite concentrate from stage one, as per an earlier agreement. Additional rights over stage two production have also been secured.
Upon the initial funding tranche, Gerald Group will gain the right to appoint directors to Lindian’s main board and its Malawi subsidiary boards. Lindian is actively negotiating binding terms and completing Gerald’s due diligence to expedite the project timeline.
Kangankunde Project
The Kangankunde Project holds one of the largest high-grade rare earth oxide deposits globally, with minimal impurities. The stage one feasibility study highlights low capital and operational costs compared to similar global projects. Construction is targeted to begin in H1 2025, following the completion of the feasibility study. With key licenses and government support already in place, the project is on track to deliver significant outputs in the near future.
“We are pleased that a globally recognized 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 H1 2025. We look forward to working with Gerald to expedite the finalization of the binding arrangements as quickly as possible,” said Alwyn Vorster, CEO of Lindian Resources, expressed optimism about the partnership with Gerald Group.
