Lindian secures US$11.6M facility with Malawian bank to support Kangankunde ramp-up Proactive uses images sourced from Shutterstock

Lindian Resources Ltd (ASX:LIN, OTC:LINIF) has secured an US$11.6 million (~A$16.6 million) equipment finance and working capital facility from Malawi-based NBS Bank Plc, adding further funding flexibility as construction advances at its flagship Kangankunde Rare Earths Project.

The composite facility, approved by the NBS Bank board, combines asset-backed financing for mining equipment with additional liquidity to support operations during ramp-up — complementing Lindian’s recently completed A$100 million institutional placement and leaving the company free of core project finance debt.

The agreement is structured across two components:

Asset finance facility: US$4.6 million over five years, including an 18-month grace period Working capital facility: US$7.0 million over three years

The asset finance portion will reimburse up to 90% of the cost of Lindian’s Komatsu owner-operator mining fleet, while the working capital facility provides a liquidity buffer as Kangankunde moves towards production.

Supporting construction and early operations

The funding is targeted squarely at the transition from construction into operations, with the company progressing towards mechanical completion in the second half of 2026.

Importantly, the facilities are designed as ancillary funding rather than core project finance, allowing Lindian to maintain a relatively clean balance sheet while still securing operational flexibility.

The equipment finance covers a substantial mining fleet, including articulated dump trucks, excavators, wheel loaders and ancillary support units, secured under an asset-level general security deed.

The working capital component, structured as a revolving facility, is expected to support day-to-day mining activities once the project reaches practical completion and begins generating sales.

Local financing partnership a strategic focus

Beyond the funding itself, the deal underscores Lindian’s strategy of building in-country partnerships as Kangankunde develops into a major rare earths operation.

Director Teck Lim said the facilities reflected a maturing financial approach as the project moves through construction.

“The asset finance provides a locally sourced, structured solution for the Komatsu mining fleet, while the working capital facility provides additional standby liquidity buffer,” he said.

“Securing these facilities through NBS Bank, one of Malawi’s most respected financial institutions, provides strong validation for the Kangankunde Rare Earths Project and demonstrates genuine commitment to building close partnerships in Malawi and ensuring that the economic activity generated by Kangankunde flows through local institutions and local procurement.”

Story Continues

NBS Bank CEO Temwani Simwaka described Kangankunde as a strategically important project for Malawi, highlighting its potential to drive economic development, employment and growth in the country’s mining sector.

Building momentum at Kangankunde

The latest financing follows a series of funding and corporate updates as Lindian accelerates development at Kangankunde, including the completion of the milestone A$100 million placement, alongside recent moves to strengthen the company’s finance leadership team and lock in fuel pricing to support greater cost certainty as Kangankunde advances towards production.

The project is expected to produce a high-grade monazite concentrate with around 55% total rare earth oxides, targeting key magnet metals such as neodymium and praseodymium, which are critical for electric vehicles and renewable energy technologies.

Lindian’s recent moves point to a coordinated push towards first production, with Kangankunde positioned as one of the more advanced rare earths development projects globally.

Focus shifts to execution

With funding largely in place and construction progressing, the focus for Lindian is increasingly shifting to execution — completing build-out, commissioning operations and delivering a smooth ramp-up.

The addition of locally sourced debt facilities adds another layer of flexibility at a critical stage, helping to manage cash flow as the project transitions from capital-intensive construction to revenue-generating operations.

With mechanical completion targeted in the second half of 2026, Kangankunde is moving into a more defined delivery phase where funding, partnerships and operational readiness begin to converge.

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