Giyani Metals has finalised the US$26 million funding package to progress K.Hill to Final Investment Decision.

Highlights:

• Giyani has secured US$10 million of funding from ARCH Sustainable Resources Fund LP, an ESG-mandated, private equity fund focused on strategic, long-term investments in natural resources and renewable energy.
• The US$10 million ARCH investment fulfils a key condition to drawdown of the US$16 million convertible loan facility secured by Giyani from the Industrial Development Corporation of South Africa.
• The total US$26 million funding package will progress K.Hill to FID, including an optimized FS for the project and completing the construction, commissioning, and operation of the Giyani Metals’ Demo Plant. The Demo Plant will produce battery-grade manganese (HPMSM) enabling Giyani to progress customer offtake discussions.
• The ARCH funding package consists of: (i) a US$4.8 million unit offering and one common share purchase warrant exercisable at a price of C$0.225 per warrant for five years; and (ii) US$5.2 million for a 2% gross revenue royalty which includes a 1% buy-back provision and an automatic step-down by 0.5% after 20 years or 2.5 Mt of HPMSM production.
• Following completion of the ARCH Offering, ARCH will hold approximately 19.99% of Giyani’s issued shares.

Danny Keating, President, and CEO of Giyani Metals, commented:

“We are delighted to welcome ARCH as a shareholder and strategic partner to assist us in the long- term development of K.Hill. Attracting a group with such strong ESG credentials rewards the hard work that the team has undertaken to date and confirms our execution strategy.

“After completing an incredibly thorough due diligence process performed by world-class engineering, marketing, and social and environmental consultants, we are very excited to welcome two high quality investor groups to Giyani Metals. Despite the difficult market conditions, the package we have secured minimizes dilution for current shareholders and gives us the financing to fundamentally de-risk the project and unlock the massive value contained within K.Hill.”

Amanda van Dyke, Managing Director at ARCH, commented:

“ARCH is very happy to announce its strategic investment in Giyani Metals, recognizing the unique opportunity it presents in the rapidly growing global battery market due to the crucial role HPMSM will play in the future of lithium-ion batteries.

“Once operational, Giyani’s plant will showcase the commercial viability of the team’s proprietary low-carbon technology, positioning the company among the select few with high quality projects capable of contributing to a diversified global supply chain and provide manufacturers with responsibly sourced, low carbon battery materials.

ARCH has significant experience in successfully delivering projects to the highest ESG standards, and we look forward to supporting the team through construction and ultimately production.”