K.Hill manganese project to receive US $16M boost
The K.Hill manganese project in Botswana is set to receive US $16M from the Industrial Development Corporation (IDC) to support its development.
Giyani Metals made the announcement and said the financing comprises two long-term convertible loan facilities (US $12.5 million and US $3.5 million) with the IDC. The Canadian mineral resource development company, pointed out that the funding is a crucial part of a $26 million funding package that Giyani intends to use to advance the K.Hill mine toward a final investment decision (FID).
The company plans to utilize the proceeds to operate its demonstration plant, located in Johannesburg, South Africa, which is designed to produce manganese suitable for batteries. Additionally, Giyani aims to conduct an optimized feasibility study for the K.Hill project.
K.Hill manganese project
Giyani’s President and CEO, Danny Keating, expressed that this investment is a significant step in de-risking the project until the FID stage and brings in a partner with a shared vision and ambition for the project’s development and capital funding.
The demonstration plant will play a key role in producing manganese samples for potential customers, contributing to the finalization of the company’s sales and off-taker strategy for the commercial-scale plant to be constructed in Botswana.
Giyani plans to secure the remaining $10 million of the funding package from a strategic investor, which has signed a non-binding term sheet. The IDC’s Chief Operations Officer, Joanne Bate, emphasized the excitement about Giyani’s potential and sees the K.Hill project as a crucial step in the IDC’s strategy to initiate the development of a battery minerals industry in southern Africa. The K.Hill project, situated within a 438 km² license area as part of the Giyani project, focuses on producing high-purity manganese sulphate monohydrate.
