Lindian Resources (ASX:LIN) signed a term sheet with Gerald Group for a proposed $50 million funding and offtake package, to support capital and operational costs at its Kangankunde Rare Earths Project in Malawi, East Africa, according to a Monday filing with the Australian bourse.

The term sheet outlines Gerald's funding through equity, convertible instruments, and prepayment loans, to be partly repaid with the supply of monazite concentrate from the project, under an offtake agreement, the filing said.

In exchange, Gerald is expected to receive full offtake rights for monazite concentrate from Phase 1 of the project and partial rights from Phase 2.

Lindian is finalizing negotiations and completing Gerald's due diligence process, the filing added.