Lifezone Metals announces completion of BHP’s additional investment in Kabanga Nickel

As previously announced, this investment increases BHP’s direct equity interest in Kabanga Nickel from 8.9% to 17%. BHP also has an option to further increase its direct equity interest in Kabanga Nickel to 60.7%, subject to the satisfaction of certain conditions, including the satisfactory completion of, and agreement on, the definitive feasibility study for the Kabanga project and other approvals.

BHP’s initial investment included a loan of US$40 million to Kabanga Nickel, which was converted into an 8.9% equity interest in Kabanga Nickel. The initial investment also included a US$10 million investment from BHP in Lifezone Metals. Based on tests and studies, Lifezone Metals’ proprietary hydrometallurgical processing technology has the potential to be a more cost-efficient alternative to conventional smelting, with a significantly lower environmental impact. Recent test results indicate that the Kabanga project’s nickel concentrate is amenable to processing using the Hydromet Technology. We believe the Hydromet Technology is key to unlocking the value of the Kabanga project in North-West Tanzania, which we believe is one of the largest and highest quality undeveloped nickel sulfide deposits in the world.

Chris Showalter, Lifezone Metals’ CEO, said:

“With the second tranche of funding from BHP secured, Lifezone Metals will continue to progress work on the resource definition drilling, early works, resettlement and the definitive feasibility study for the Kabanga project, a development-ready deposit of metals which we believe will be essential for the clean energy transition. Our partnership with BHP provides additional funding and enhances our engineering expertise.”

Read the article online at: https://www.globalminingreview.com/mining/16022023/lifezone-metals-announces-completion-of-bhps-additional-investment-in-kabanga-nickel/