Lifezone Metals Lands $60M Funding Boost for World-Class Kabanga Nickel Project
Lifezone Metals (NYSE: LZM) announced on Monday it has secured a $60 million bridge loan from Taurus Mining Finance Fund to support early works and infrastructure development at its flagship Kabanga nickel project in northwest Tanzania.
Kabanga is recognized as one of the world’s largest and highest-grade undeveloped nickel sulfide deposits, holding more than 2 million tonnes of nickel in resources.
The deposit also contains significant copper and cobalt by-products, making it strategically important for the global battery supply chain.
Chief executive officer Chris Showalter said the loan underscores the company’s readiness and strategic progress following its recent move to acquire full ownership of Kabanga Nickel Limited (KNL).
Lifezone completed the acquisition last month, giving it 100% control of KNL, which holds an 84% stake in the Kabanga project. The Tanzanian government retains the remaining 16%.
In mid-July, Lifezone acquired the 17% equity stake in KNL previously held by global miner BHP (ASX: BHP) for $83 million.
BHP had originally committed $100 million to develop the mine but has shifted its focus away from nickel in recent years due to market conditions.
The acquisition also granted Lifezone complete control of the project’s offtake rights.
Alongside the BHP stake purchase, Lifezone released an updated feasibility study for Kabanga. The study estimates 52.2 million tonnes of reserves, grading 1.98% nickel, 0.27% copper, and 0.15% cobalt.
Over an 18-year mine life, the concentrator is expected to produce approximately 902,000 tonnes of nickel, 134,000 tonnes of copper, and 69,000 tonnes of cobalt in intermediate product.
The project’s after-tax net present value (NPV) at an 8% discount rate is estimated at $1.58 billion, with an internal rate of return (IRR) of 23.3%.
The Taurus loan will provide critical capital to keep the project moving during the execution readiness phase, bridging the gap between feasibility study completion and a final investment decision, which is anticipated in mid-2026.
“With the feasibility study now complete, Taurus’ funding enables us to advance critical early-stage development while progressing the competitive process underway with Standard Chartered to select additional strategic investment partners,” Showalter said.
“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.”
According to the feasibility study, pre-production capital costs are estimated at $942 million, with life-of-mine costs projected at $2.49 billion.
Following the loan announcement, Lifezone Metals’ shares rose nearly 4% by midday Monday, lifting its market capitalization to $355.2 million.
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