Canadian battery minerals company Giyani Metals, advancing the Kanye Manganese project in Botswana, recently secured a substantial funding boost of $16 million (approximately R300 million or over P200 million) from South Africa’s state-owned Industrial Development Corporation (IDC).
The agreement, finalized on November 30, 2023, outlines a definitive deal for $16 million in convertible loan facilities from the IDC, forming a pivotal part of a larger $26 million funding package.
This financing will drive the K.Hill project towards a Final Investment Decision (FID) within the next 15 months.
It encompasses an Optimized Feasibility Study and operations for Giyani’s demo plant, designed to produce battery-grade materials for qualification testing by potential customers.
The IDC boasts an extensive 80-year history of investing in industrial companies and mining sectors, managing assets worth $8.5 billion.
With an annual investment of over $1.0 billion in mining and infrastructure projects, IDC’s involvement marks a significant step forward for Giyani Metals.
An additional $10 million funding is being secured from a strategic investor to complement the IDC backing.
Giyani Metals’ President and CEO, Danny Keating, expressed enthusiasm about the IDC funding, calling it a pivotal moment for the K.Hill project’s progress.
“The IDC funding stands as a resounding vote of confidence in K.Hill. This partnership brings valuable expertise in mining and industrial development.
It substantially funds Giyani’s de-risking strategy towards FID and aligns us with a partner keen on contributing to the project’s development and capital funding.
Our focus now shifts to commencing operations at the Demonstration Plant, facilitating sample distributions to potential customers, and finalizing our sales and off-taker strategy for the forthcoming commercial-scale plant in Botswana.”
Joanne Bate, IDC’s Chief Operations Officer, highlighted the corporation’s value chain strategy, emphasizing their interest not just in critical new minerals for achieving net zero but also in their processing for precursor materials, cell manufacturing, battery development, assembly, and recycling.
“We’re enthusiastic about Giyani’s potential and perceive K. Hill as a crucial step in IDC’s strategy to foster the growth of a battery minerals industry in Southern Africa.”
