Lindian Resources to raise fund for inaugural drilling programme at Gaoual Bauxite Project

Lindian Resources Limited has reportedly received approval for raising a fund of up to $1.3 million from professional and sophisticated investors to be used to undertake the company’s inaugural drilling programme at the Gaoual Bauxite Project in Guinea. The $1.3 million includes $200,000 from Lindian’s Chairman Asimwe Kabunga, but subject to shareholders’ approval.

This follows the recent completion of due diligence and the issuing of the notice to proceed with acquiring up to 75 per cent of the Gaoual Bauxite Project.

With the fund raised, together with the existing $1 million loan facility, will ensure Lindian to be capable to undertake its upcoming inaugural drilling programme at the Gaoual Project. The programme is scheduled to commence in the fourth quarter of 2019.

Commenting on the placement, Lindian’s Managing Director Shannon Green said, “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 Gaoual Bauxite Project.”

On April 10, 2019, Lindian had signed an exclusive option agreement with KB Bauxite Guinea SARLU and its sole shareholder Guinea Bauxite Pty Ltd. to acquire the Gaoual Bauxite Project.