IDC in South Africa signs finance deal for demonstration plant that will produce battery-grade manganese

News Flash

  • Canada’s Giyani Metals Corp (Giyani), developer of the K.Hill battery-grade manganese project in Botswana is pleased to announce that it has signed definitive agreements for US$16 million of financing with the Industrial Development Corporation of South Africa Limited (IDC) in the form of convertible loan facilities for the development of a demonstration plant that will produce battery-grade manganese for qualification testing by potential customers.

Highlights of the deal include:

  • The IDC financing is the cornerstone of a US$26 million funding package that will over the next 15 months progress K.Hill to a Final Investment Decision, including an Optimized Feasibility Study for the Project and operating the Company’s demonstration plant which will produce battery-grade manganese for qualification testing by potential customers.
  • Giyani and its wholly owned subsidiaries have secured US$16 million via long-term convertible loan facilities with the IDC, which will enable Giyani to progress to FID, while minimising shareholder dilution at this time.
  • The IDC1 is a major South African development financing institution with over 80 years of experience investing in industrial companies and the mining sector, with US$8.5 billion of assets and who typically invests over US$1.0 billion each year in mining and infrastructure related projects.
  • The remaining US$10 million of funding is in the process of being secured from a strategic investor who has signed a non-binding term sheet, completed its due diligence and is currently in the final documentation stage.

Link to full terms of the deal HERE: 2023 11 30 Giyani NR IDC Final

Author: Bryan Groenendaal

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