Rare earths tearaway Lindian Resources raising $30m, Euroz on ticket

afr.com:

Lindian Resources, the rare earths and bauxite explorer whose shares are up 80 per cent this year, had Euroz Hartleys rounding up investors for a $30 million raising on Monday.

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 the Kangankunde rare earths project in Malawi.

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 book runner on the raising.

Lindian last tapped the equity capital markets for $9 million at 26¢ a share in late March, after it struck further neodymium-praseodymium at Kangankunde. The non-brokered raise was done at a 10.5 per cent premium to the last close and taken up by two investors.

The company had a $426 million market capitalisation before the raise. Shares have risen 277 per cent over the past 12 months and 80 per cent year-to-date as it continued drilling in Malawi.