Giyani Metals secures preliminary backing for K.Hill project
Giyani Metals Corp. has taken a significant step toward financing its K.Hill battery-grade manganese project in Botswana, following the receipt of a non-binding letter of interest from the Export-Import Bank of the United States (EXIM).
The letter outlines potential support of up to US$225 million in long-term debt financing to assist in the construction of the project, with a proposed repayment period of up to 15 years. The K.Hill project is focused on producing high-purity manganese, a key material used in electric vehicle (EV) batteries.
K.Hill project
This proposed financing falls under EXIM’s newly launched Supply Chain Resilience Initiative (SCRI), which aims to strengthen the United States’ supply chain independence by reducing reliance on critical minerals sourced from China. The SCRI supports U.S. industries such as battery manufacturing, EV production, and semiconductor development.
The LOI from EXIM is not a final loan agreement but signals the bank’s willingness to consider financial backing, subject to due diligence, negotiation of terms, and the completion of a Definitive Feasibility Study (DFS). Giyani is currently conducting the DFS and expects to finalize it in the first quarter of 2026.
A key condition for unlocking EXIM’s support is the establishment of offtake agreements with U.S.-based companies an integral part of Giyani’s commercial strategy. Company CEO Charles FitzRoy welcomed the development as a validation of Giyani’s role in the critical minerals sector and a positive step toward securing full project funding.
FitzRoy also highlighted the advantages of Export Credit Agency (ECA) financing, which can provide more favorable loan terms compared to traditional sources. These benefits include lower interest rates and longer repayment schedules, allowing companies like Giyani to pursue capital-intensive projects while delivering long-term value to shareholders.
