Lifezone Metals secures $60M bridge loan for nickel project

Lifezone Metals (NYSE: LZM) claimed on Monday it has actually protected a $60 million swing loan from Taurus Mining Money Fund to money very early jobs and facilities advancement at its front runner Kabanga nickel task in northwest Tanzania.

Kabanga is thought about to be among the globe’s biggest and highest-grade untaught nickel sulfide tasks, consisting of over 2 million tonnes of the battery steel in sources. The down payment additionally consists of substantial copper and cobalt as byproducts.

The car loan, states president Chris Showalter, more shows the prep work and calculated actions Lifezone has actually absorbed expectancy of a 100% possession of Kabanga Nickel Limited (KNL), which it finished last month.

KNL is the bulk proprietor of the Kabanga task with an 84% passion. The continuing to be 16% is held by the Tanzanian federal government.

In mid-July, Lifezone combined its passion in KNL after acquiring the 17% equity stake formerly held by international miner BHP (ASX: BHP) for $83 million. BHP had actually formerly devoted to spend $100 million in constructing the nickel mine, yet in recent times has actually changed its emphasis far from nickel as a result of market problems.

The offer would certainly provide Lifezone complete control of the Kabanga nickel procedures, consisting of 100% of its offtake civil liberties.

Simultaneous with acquiring BHP’s task risk, Lifezone additionally launched an usefulness research for the task, which included an updated book quote of 52.2 million tonnes rating 1.98% nickel, 0.27% copper and 0.15% cobalt.

Mining of the ores would certainly happen for 18 years, throughout which the concentrator is anticipated to generate a total amount of 902,000 tonnes of nickel, 134,000 tonnes of copper and 69,000 tonnes of cobalt in intermediate item, the research reveals. Its after-tax internet existing worth (at 8% discount rate) is approximated at $1.58 billion, with an interior price of return of 23.3%.

Task preparedness

The Taurus car loan, the business states, offers important financing to preserve task energy throughout the implementation preparedness stage, connecting the duration in between usefulness research conclusion and last financial investment choice, which is anticipated in mid-2026.

” With the usefulness research currently total, Taurus’ financing allows us to progress essential early-stage advancement while advancing the affordable procedure underway with Common Chartered to choose added calculated financial investment companions,” Showalter claimed in a declaration.

” In parallel, we are progressing the task funding procedure with Societe Generale, as we pursue a detailed financing option for the Kabanga nickel task.”

According to the brand-new usefulness research, the pre-production expense for the mine is secured at $942 million, while the life-of-mine expense can amount to $2.49 billion.

Shares of Lifezone Metals increased almost 4% by lunchtime Monday on the car loan statement, sending its market capitalization to $355.2 million.