Lindian Resources (ASX:LIN) has reached a financial milestone for its flagship Kangankunde Rare Earths Project in Malawi, securing a US$11.6 million composite credit facility from NBS Bank.
The partnership with one of Malawi's most established financial institutions marks a shift in the company's funding strategy, moving towards locally sourced, structured debt to support its primary construction phase.
The financing package is split into two distinct tranches designed to optimise capital expenditure and operational flexibility.
The first is a US$4.6 million asset finance facility with a five-year tenor and an initial 18-month grace period.
The facility is specifically designated to reimburse Lindian for 90% of the costs associated with its Komatsu owner-operator mining fleet, which has already been paid for by the company.
The second component is a US$7 million working capital facility with a three-year tenor, intended to provide a robust liquidity buffer as the project transitions through the critical ramp-up and operational stages.
Lindian Director Teck Lim emphasised that the agreement reflects the growing maturity of the company’s financial framework.
At the time of reporting, Lindian Resources' share price was $0.95.