Lifezone Metals announced that its subsidiary, Kabanga Nickel Limited, has secured a $60 million bridge loan from Taurus Mining Finance Fund No. 2, L.P., to advance its Kabanga Nickel Project in northwest Tanzania. The funding will support early works and infrastructure as Lifezone seeks long-term project financing.
The senior secured loan, bearing an interest rate of 9.25% (plus fees), is guaranteed by Lifezone subsidiaries and secured by shares and assets related to the project. It matures on July 31, 2027, with an optional six-month extension. Lifezone also issued 2.5 million warrants to Taurus at $5.42/share, expiring in five years. Borrowing is contingent on customary conditions precedent.
Additionally, the terms of existing Senior Unsecured Convertible Debentures were amended. Kabanga Nickel, considered among the world’s largest development-ready nickel, copper, and cobalt sulfide deposits, is 84% owned by Lifezone and 16% by the Tanzanian government.
Key Feasibility Study highlights:
- 18-year mine life producing 52.2 Mt of ore grading 1.98% Ni, 0.27% Cu, 0.15% Co (100% basis).
- Annual throughput: 3.4 Mt, yielding concentrates with 17.5% nickel.
- All-in sustaining costs average $3.36/lb payable nickel; pre-production capital is $942 million.
- Total life-of-mine capital totals $2.49 billion; expected revenue is $14.1 billion, and after-tax free cash flow is $4.6 billion.
- Project NPV (8%) is $1.58 billion, IRR is 23.3%, based on long-term consensus prices.
KEY QUOTES:
“This announcement further demonstrates the preparation and strategic steps Lifezone has taken in anticipation of consolidating 100% ownership of Kabanga Nickel Limited, which we completed last month. The support from Taurus, a respected and experienced mining finance partner, reflects the strength of our project and our team’s ability to deliver. With the Feasibility Study now complete, Taurus’s funding enables us to advance critical early-stage development while progressing the competitive process underway with Standard Chartered to select additional strategic investment partners. In parallel, we are advancing the project financing process with Societe Generale, as we work toward a comprehensive funding solution for the Kabanga Nickel Project.”
Lifezone Metals Limited CEO Chris Showalter
