Lifezone Metals Closes $60M Bridge Loan to Advance Kabanga Nickel Project in Tanzania
Lifezone Metals, listed on the NYSE, has closed a $60-million bridge loan facility with Taurus Mining Finance Fund No. 2, enabling its wholly-owned subsidiary, Kabanga Nickel, to advance early works and infrastructure development at its nickel project in Tanzania.
The first tranche of $20 million was received on August 29, with subsequent tranches contingent on achieving key project milestones.
The facility will support ongoing capital expenditure and operating expenses over three-month intervals while accelerating the broader project finance process following the release of a robust feasibility study in July.
CEO Chris Showalter stated that the bridge loan concludes the short-term financing phase, with Standard Chartered Bank advising on both the facility and the broader strategic investment process.
Lifezone also confirmed it is in advanced discussions with major counterparties and financial investors regarding potential long-term partnerships and equity investments.
Several non-binding offers related to possible transactions at the Kabanga project level have been received.
The company’s investment committee, supported by Standard Chartered, is evaluating strategic options, including potential change-of-control transactions, though no agreements have been reached and there is no assurance a transaction will occur.
The Kabanga project, one of the world’s premier nickel sulphide assets, remains on track. Funds from the Taurus facility are earmarked for critical early works and infrastructure.
Lifezone’s feasibility study outlines the initial development phase, including a 3.4-million-ton-per-year underground mine, processing infrastructure, and tailings storage.
The project will produce a high-grade nickel, copper, and cobalt concentrate with an expected 18-year mine life.
At steady-state, the project is expected to deliver 60,000 t/y of nickel, making it one of the largest underground nickel mines globally.
About the Author
