Giyani Metals Corp. (TSXV:EMM, GR:A2DUU8)
(“
Giyani” or the “
Company”),
developer of the K.Hill battery-grade manganese project in Botswana
(“
K.Hill” or “
the Project”),
is pleased to announce the receipt of US$5.7 million (ZAR109
million) in first drawdown funds from the Industrial Development
Corporation of South Africa (“
IDC”) as part of the
US$16m South African Rand (“
ZAR”) equivalent
convertible loan facilities (“
IDC Facility”).
Highlights:
-
Giyani has received the first drawdown of US$5.7m (ZAR109m) from
its US$16m ZAR equivalent IDC Facility. The IDC has the ability to
convert the outstanding amount extended under the IDC Facility into
shares (and shareholder loans) in Thabatala Holdings Proprietary
Limited (“HoldCo”),1 subject to the Company
receiving TSXV approval and the IDC receiving applicable South
African regulatory approval. (See news release
(“NR”) dated November 30, 2023, and March 28,
2024, for details of the IDC Facility).
-
The IDC is a major South African development financing institution
with over 80 years of experience investing in the industrial and
mining sector, with US$8.5 billion of assets typically investing
over US$1.0 billion each year in mining, infrastructure and other
related projects.
-
Giyani recently closed a US$10 million investment from ARCH
Sustainable Resources Fund LP (“ARCH”) (See NR
dated February 21, 2024) which has already been partially deployed
to commence the Company’s 2024 drilling programme to update the
K.Hill Mineral Resource Estimate (“MRE”). This is
an important component of Giyani’s Definitive Feasibility Study
(“DFS”) which is targeted for completion in H1
2025.
-
Demonstration plant (“Demo Plant”) construction
continues with the recent mobilisation of the civil contractor to
site in Johannesburg with the aim of supplying battery-grade
manganese (HPMSM) to potential offtakers for testing in Q4 2024,
post commissioning of the Demo Plant.
-
In addition to producing product for offtakers, the Demo Plant is a
vital tool for flowsheet optimization as the Company targets
operating cost reductions, energy efficiency measures and
minimising reagent consumption to inform the Project economics and
contribute positively to the DFS.
Danny Keating, President and CEO of the
Company, commented:
“Completing the first drawdown of the IDC
Facility is another important achievement for the Company as we
embark on the workstreams to take the Project towards construction.
I would like to thank the Giyani and IDC teams for their hard work
completing the intensive due diligence process and for managing the
regulatory workstreams in Canada, South Africa and Botswana which
has enabled the IDC Facility to be implemented.
Our key workstreams are in process and the
Company is working hard to de-risk the project for financiers and
offtakers as we look to position Giyani as a dominant producer of
HPMSM globally.”
The IDC Facility
Terms for the IDC Facility and HoldCo structure
can be found in the NRs dated November 30, 2023 and March 28, 2024.
Copies of the agreements underlying the IDC Facility have been
filed under the Company’s profile on SEDAR+ at
www.sedarplus.ca.
Timeline to Final Investment
Decision
Figure 1: Timeline to FID
Project Execution and Definitive
Feasibility Study
Now that the Company has secured its financing
from ARCH and completed an initial drawdown under the IDC Facility,
the Company will continue progressing the critical workstreams to
move K.Hill to Final Investment Decision (“FID”).
These major workstreams are discussed in the Company’s 2023 AIF,
2023 MD&A, and the corporate presentation2 and include:
-
Completing construction, commissioning, and entering into the
operational phase of the Demo Plant in Johannesburg, which is
designed to be a large-scale proof of concept for Giyani’s
flowsheet and is:
-
1:10 engineering scale; and
-
Capable of producing up to 600 kg per day of dry HPMSM crystals for
shipment to offtakers for product qualification and negotiation of
sales contracts, starting in Q4 2024.
-
Flowsheet optimisation undertaken at significant scale including
testing to reduce costs, reagent use and carbon emissions.
-
Training of staff, including personnel recruited from Botswana, who
can gain technical and operational skills prior to the construction
and operation of the commercial plant which will help to minimise
the ramp-up period.
-
Completion of a DFS to meet the requirements of project finance
institutions, based on:
-
An updated MRE for K.Hill from additional drilling currently
underway;
-
The Company's Preliminary Economic Assessment from July 2023 and
Feasibility Study from November 2022, copies of which are available
on SEDAR+; and
-
Data and learnings from the operation of the Demo Plant.
-
Advancing discussions with multiple Tier-1 offtakers who have
expressed interest in bringing K.Hill into their battery raw
material supply chains, a number of whom have already visited
Giyani's facilities.
-
Securing of the mining licence and other permits required for the
Project.
-
Submitting the Special Economic Zone (“SEZ”)
licence application and acknowledgement of SEZ status by the
Special Economic Zone Authority of Botswana.
-
Continuing to augment the systems for the Company to function as a
focused, efficient, low carbon and risk conscious business as it
puts in place all the building blocks for a successful
company.
-
Further developing the Company’s corporate ESG strategy and
commitments following the successful receipt of the Environmental
Authorisation for K.Hill in December 2023 (see NR dated January 4,
2024).
Fees
As consideration for services rendered to Giyani
in connection with securing the IDC Facility and completing the
initial drawdown, Giyani will pay Hannam & Partners a cash fee
of US$365,750. A further US$300,000 payment is contingent on a
successful IDC conversion into HoldCo shares.
About Giyani
Giyani is focussed on becoming a dominant
western-world producer of sustainable, low carbon high purity
battery-grade manganese for the electric vehicle
(“EV”) industry. The Company has developed a
proprietary hydrometallurgical process to produce High Purity
Manganese Sulphate Monohydrate (“HPMSM”), a
lithium-ion battery (“LIB”) cathode precursor
material critical for EVs.
The Company has recently secured US$26m in
financing from two strategic partners ARCH Sustainable Resources
Fund LP and the Industrial Development Corporation of South Africa
as it aims to progress the K.Hill battery-grade manganese project
in Botswana to construction by building and operating the
demonstration plant and completing a Definitive Feasibility Study
by H1 2025.
Additional information and corporate documents
may be found on www.sedarplus.ca and on Giyani Metals Corp. website
at https://giyanimetals.com/.
Figure 2: Simplified Giyani Metals Corporate
Structure
About the IDC
The Industrial Development Corporation of South
Africa is the largest development finance institution in
sub-Saharan Africa. The Corporation funds viable businesses to
build industrial capacity, thus contributing to the economic growth
in Southern Africa and the rest of the African continent. For more
information visit www.idc.co.za.
On behalf of the Board of Directors of Giyani
Metals Corp.
Danny Keating, President and CEO
Contact:Tel: +1289-291-7632
Danny Keating, President & CEO
dkeating@giyanimetals.com
Charles FitzRoy, Head of Corporate Development
& Strategy
cfitzroy@giyanimetals.com
Neither the TSX Venture Exchange (the “TSXV”)
nor its Regulation Services Provider (as that term is defined in
the policies of the TSXV) accepts responsibility for the adequacy
or accuracy of this news release.
The securities described herein have not been
registered under the United States Securities Act of 1933, as
amended (the “U.S. Securities Act”), or any state securities laws,
and accordingly, may not be offered or sold to, or for the account
or benefit of, persons in the United States or “U.S. persons”, as
such term is defined in Regulation S promulgated under the U.S.
Securities Act (“U.S. Persons”), except in compliance with the
registration requirements of the U.S. Securities Act and applicable
state securities requirements or pursuant to exemptions therefrom.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the Company's securities to,
or for the account of benefit of, persons in the United States or
U.S. Persons.
Forward Looking Information
This news release contains “forward-looking
information” within the meaning of applicable Canadian securities
legislation. All statements in this news release, other than
statements of historical fact, that address events or developments
that Giyani expects to occur, are “forward-looking statements”.
Forward-looking statements are statements that are not historical
facts and are generally, but not always, identified by the words
“expects”, “does not expect”, “plans”, “anticipates”, “does not
anticipate”, “believes”, “intends”, “estimates”, “projects”,
“potential”, “scheduled”, “forecast”, “budget” and similar
expressions, or that events or conditions “will”, “would”, “may”,
“could”, “should” or “might” occur.
Such statements include without limitation: the
Company making a FID in mid-2025 or at all, the commissioning and
operation of the Demo Plant and results therefrom, the completion
of the DFS on the timeline stated or at all, an updated MRE for
K.Hill, payment of fees by the Company related to the IDC Facility,
the Company seeking project financing in 2025 or at all,
discussions with Tier 1 offtakers and further development of the
Company’s corporate ESG strategy and commitments.
All such forward-looking statements are based on
the opinions and estimates of the relevant management as of the
date such statements are made and are subject to certain
assumptions, important risk factors and uncertainties, many of
which are beyond Giyani's ability to control or predict.
Forward-looking statements are necessarily based on estimates and
assumptions that are inherently subject to known and unknown risks,
uncertainties and other factors that may cause actual results,
level of activity, performance or achievements to be materially
different from those expressed or implied by such forward-looking
statements. In the case of Giyani, these facts include anticipated
operations in future periods, planned exploration and development
of its properties, and plans related to its business and other
matters that may occur in the future. This information relates to
analyses and other information that is based on expectations of
future performance and planned work programs.
Forward-looking information is subject to a
variety of known and unknown risks, uncertainties and other factors
which could cause actual events or results to differ from those
expressed or implied by the forward-looking information, including,
without limitation: inherent exploration hazards and risks; risks
related to exploration and development of natural resource
properties; uncertainty in Giyani's ability to obtain funding;
commodity price fluctuations; recent market events and conditions;
risks related to the uncertainty of Mineral Resource calculations
and the inclusion of Inferred Mineral Resources in economic
estimation; risks related to governmental regulations; risks
related to obtaining necessary licences and permits; risks related
to Giyani's business being subject to environmental laws and
regulations; risks related to the Company's mineral properties
being subject to prior unregistered agreements, transfers, or
claims and other defects in title; risks relating to competition
from larger companies with greater financial and technical
resources; risks relating to the inability to meet financial
obligations under agreements to which they are a party; ability to
recruit and retain qualified personnel; and risks related to the
Company's directors and officers becoming associated with other
natural resource companies which may give rise to conflicts of
interests. This list is not exhaustive of the factors that may
affect Giyani's forward-looking information. Should one or more of
these risks and uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those described in the forward-looking information or
statements.
Giyani's forward-looking information is based on
the reasonable beliefs, expectations and opinions of the Company's
respective management on the date the statements are made, and
Giyani does not assume any obligation to update forward-looking
information if circumstances or management's beliefs, expectations
or opinions change, except as required by law. For the reasons set
forth above, investors should not place undue reliance on
forward-looking information. For a complete discussion with respect
to Giyani and risks associated with forward-looking information and
forward-looking statements, please refer to Giyani's continuous
disclosure documents which are filed on SEDAR+ at
www.sedarplus.ca.
1 See Figure 22
https://giyanimetals.com/investors/presentation-analyst-coverage-media
Photos accompanying this announcement are
available
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