HomeMarket NewsMiningGiyani Metals Closes $16 Million Funding for K.Hill Manganese Project in Botswana

Giyani Metals Closes $16 Million Funding for K.Hill Manganese Project in Botswana

Actionable Trade Ideas

always free

The Industrial Development Corporation (IDC) is a South African financing institution investing in industrial companies and the mining sector. With over 80 years of experience, it consistently invests more than $1 billion annually in mining and infrastructure projects.

Giyani Metals CEO Danny Keating expressed excitement about the IDC funding, considering it a strong endorsement of K.Hill. In his words, β€œThis brings on board a strategic partner with significant mining and industrial development experience.”

The IDC funding consists of two separate loan facilities of $12.5 million and $3.5 million, both with similar terms. The terms include the commissioning of a demonstration plant within a year of the first drawdown date and completion of the optimized FS within 90 days afterward.

Furthermore, a remaining $10 million funding package is in the final stages of being secured from a strategic investor who has concluded its due diligence process.

K.Hill, situated about 60 km southwest of Gaborone, Botswana’s capital, is a near-surface manganese oxide deposit.

An initial assessment in July 2023 outlined favorable economics for the potential open-pit mine, pinpointing a post-tax net present value of $984 million and 29.4% internal rate of return. The project’s estimated initial capital expenditure stands at $284 million.

Over a projected 57-year lifespan, K.Hill aims to supply more than 3.5 million tons of high-purity manganese sulfate monohydrate to the electric vehicle industry. The ore will undergo processing using the company’s hydrometallurgical process, which will be tested in the upcoming demonstration plant.

K.Hill isn’t the lone manganese project to secure substantial financing recently. Euro Manganese (TSXV, ASX: EMN) recently finalized agreements with Orion Resource Partners Group for a $100 million financing to advance the Chvaletice project in the Czech Republic.

blank

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.