Canadian firm, Giyani Metals, has finalised $26 million (P353.6 million) in funding needed to move the Kgwakgwe Hill project to a final investment decision, which includes establishing a demo plant to produce battery-grade manganese.
In a market update this afternoon, Giyani officials said the company had secured $10 million (P136 million) in funding from ARCH Sustainable Resources Fund LP, a private equity fund focused on “strategic, long-term investments in natural resources and renewable energy”. In November, Giyani scored a $16 million convertible loan facility from South Africa’s Industrial Development Corporation towards the final activities required to move the Kgwakgwe Hill (K.Hill) project forward.
The deal with ARCH involves Giyani offering both equity and a share of royalties for the funding.
“We are delighted to welcome ARCH as a shareholder and strategic partner to assist us in the long-term development of K.Hill,” Giyani president and CEO, Danny Keating said in a statement. “Attracting a group with such strong ESG credentials rewards the hard work that the team has undertaken to date and confirms our execution strategy.”
Giyani's is developing manganese assets in Kanye, Otse and Lobatse to produce High Purity Manganese Sulphate Monohydrate, a lithium-ion battery cathode precursor material critical for electric vehicles.
K.Hill, which lies on the outskirts of Lobatse, is the company’s most advanced project in the country.
All three sites were previously mined in the 1960s and early 1970s using the rudimentary methods and technology available at that time.
According to a feasibility study last year, K.Hill has an after-tax net present value of $481 million (P6.5 billion), while revenues over the 11-year initial life of mine were projected at $3 billion (P41 billion).
