Giyani Metals Corp. (TSXV:EMM, GR:A2DUU8)
("
Giyani" or the "
Company") is
pleased to announce that it has completed a photovoltaic solar
plant (“Solar Plant”) study for its K.Hill manganese project
(“K.Hill”), in Southern Botswana. In addition, Giyani has granted
750,000 stock options to certain consultants of the Company.
Solar Plant Study
The Company is committed to building an
environmentally sustainable operation and to have a positive impact
for all of its stakeholders. This includes not only the people,
environment and society surrounding K.Hill, but also the end buyers
that have shown interest in obtaining a more sustainable source of
high purity manganese. The K.Hill site is surrounded by flat
topography, which, coupled with the high amounts of annual
sunshine, makes it highly attractive for solar power
generation.
Approximately 40% of an electric vehicle’s
(“EV”) carbon footprint during production is associated with the
battery. Feedback Giyani has received from potential end buyers,
such as battery manufacturers and original equipment manufacturers
(“OEMs”) of EVs - particularly those in Europe, North America,
Japan and South Korea - is that they are working to reduce their
products’ carbon footprint as much as possible. Therefore, the
supply of the battery’s raw materials is a particular focus. This
has been supported by public statements by the EV OEMs on the
importance of responsibly sourced battery metals. As the market for
manganese-containing batteries continues to grow, the Company
anticipates that the sustainability of high purity manganese will
become of increasing importance.
Tetra Tech was appointed to conduct the Solar
Plant study and determine which of the following three scenarios
would be most commercially viable:
- The ‘No
Export’ scenario considers the maximum size of Solar Plant
that during peak solar generation (in the middle of the day) the
K.Hill operations are only powered by the Solar Plant. Therefore,
there is no facility for either storing or exporting excess power
to the grid. Outside of peak generation, the grid supplies the
remaining power requirements for the K.Hill operations.
- The
‘Net Zero Annual Generation’ scenario is where the
size of the Solar Plant approximately matches the annual energy
requirements of the K.Hill operations. During peak solar generation
(middle of a summer’s day), the excess power generated is exported
to the grid. And vice-versa, during times of no solar generation
(at night or on a cloudy day) power is purchased back from the
grid. Thereby, on an annualized basis, the actual consumption of
grid produced power, and therefore payments to the grid, are
near-zero. This scenario would require additional capex for grid
transmission and distribution infrastructure upgrades, as well as
regulatory approval.
- The
‘Transition into IPP’ scenario envisions Giyani as
an independent power producer (IPP), where the size of the Solar
Plant is constrained by the capacity of the local grid
interconnection infrastructure, rather than the demand from the
K.Hill operations (as per Scenario 2). Similar to Scenario 2,
excess power generated by the Solar Plant will be exported to the
grid and bought back, albeit in smaller quantities. This scenario
would also require regulatory approval.
The Solar Plant study concluded that despite
each option delivering operating cost savings to K.Hill, compared
to using 100% grid power, it is recommended to initially implement
Scenario 1, with the view to upgrading to either Scenario 2 or 3 as
a second phase once regulatory approval is granted. The Solar Plant
study will now proceed to a feasibility study on that basis.
Table 1. Solar Plant Study Summary
|
No Export |
Net Zero |
Transition to IPP |
Scenario |
1 |
2 |
3 |
Power rating (MW) |
14 |
60 |
48 |
Solar array size
(km2) |
0.3 |
1.4 |
1.1 |
Net savings (US$/yr) |
$2.8m |
$11.1m |
$9.7m |
Capex (US$m) |
$10.5m |
$44.9m |
$34.9m |
CO2 saving
(Mt/yr) |
63,000 |
247,273 |
214,375 |
Payback period (yrs) |
~3 |
~3 |
~3 |
Robin Birchall, CEO of the Company,
commented:
"A Solar Plant generates many advantages for the
K.Hill project. It creates operating cost savings, it improves our
carbon footprint, and because of this we expect it to improve the
marketability of our high purity manganese. Therefore, we expect
this initiative to not only further improve our K.Hill project NPV,
but also to provide a positive impact for the environment.
We believe that there are several attributes
that are unique to K.Hill, one of which is access to an abundant
source of renewable energy that we can harness to our advantage. As
announced on October 2, 2020 the Company appointed Minviro to
conduct an ISO compliant life cycle assessment. The Solar Plant
will be included in this analysis. It is our focus to become one of
the lowest carbon footprint producers of high purity manganese,
which in turn we expect should attract a premium price for our
product.”
Grant of Options
Giyani has granted an aggregate of 750,000 stock
options (each an "Option") to certain consultants of the Company in
accordance with the Company's current stock option plan. Each
Option is exercisable into one common share (a "Share") of the
Company at a price of $0.465 per Share for a period of five years
from the date of grant, being today, with the Options vesting as to
250,000 today, and a further 250,000 on each of the first and
second anniversaries of the grant date.
About GiyaniGiyani Metals Corp.
is a mineral resource company focused on the development of its
K.Hill, Lobatse & Otse manganese oxide projects in the Kanye
Basin, Botswana, Africa. The Company's flagship K.Hill project is a
near-surface deposit currently going through a feasibility study to
produce high-purity electrolytic manganese metal and manganese
sulphate, both key cathode ingredients for batteries in the
expanding electric vehicle (EV) market.
Additional information and corporate documents
may be found on www.sedar.com and on Giyani Metals Corp. Website:
https://giyanimetals.com/.
About TetraTechTetra Tech is a
leading provider of high-end consulting and engineering services
for projects worldwide. With 20,000 associates working together,
Tetra Tech provides clear solutions to complex problems in water,
environment, infrastructure, resource management, energy, and
international development. For more information about Tetra Tech,
please visit www.tetratech.com
Giyani appointed TetraTech, alongside SRK
Consulting, in 2019 to produce the Preliminary Economic Assessment
for K.Hill. Both consultants have since been retained by the
Company to produce K.Hill’s Feasibility Study, which is expected to
be completed later in 2021.
On behalf of the Board of Directors of Giyani
Metals Corp.
Robin Birchall, CEO
Contact:Robin Birchall CEO, Director+44 7711
313019rbirchall@giyanimetals.com
Thomas HortonVP, Business Development+44 7866
913207thorton@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 press 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 press 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. Specific forward-looking
statements and forward-looking information herein includes
completion of receipt of TSXV approval for the private placement
and completion of the private placement.
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 their
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 licenses and permits; risks related
to their business being subject to environmental laws and
regulations; risks related to their 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 their 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 their
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 financial
statements and related MD&A, all of which are filed on SEDAR at
www.sedar.com.
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