Australian mineral exploration firm Lindian Resources Limited announced last week the successful funding of bauxite drilling operations in Guinea via a A$1.3 million stock placement.
Per the firm, the placement consisted of the sale of 81.25 million fully-paid ordinary shares that were marketed primarily to professional and sophisticated investors. A 1:1 option will also be issued upon approval by the company’s existing shareholders.
Lindian said a wide-ranging group of investors showed great interest in the placement, and most commitments the firm garnered required a wind-back in order to ensure a proper spread.
“The significant interest received from both new and existing investor groups in this placement is a strong show of confidence in both Lindian’s management and the underlying potential of the Gaoual Bauxite Project,” opined Lindian’s managing director Shannon Green.
“With the Company now appropriately funded to undertake our inaugural drilling program at Gaoual, Lindian is excited to commence drilling this new opportunity at the earliest possibility.”
“We look forward to providing further updates in the near-term as preparations are finalised in advance of our maiden drilling program at Gaoual,” he concluded.
This placement joins a A$1 million loan facility to provide Lindian with sufficient capital to begin drilling at the Gaoual Bauxite Project. Lindian recently wrapped up due diligence on the project, as well as receiving the Notice to Proceed with an option to acquire rights in up to 75 percent of the project from KB Bauxite Guinea SARLU and its sole shareholder Guinea Bauxite Pty Ltd.
Lindian anticipates drilling at the site to begin during the final quarter of this year.