Giyani secures remaining US$10m to finalise US$26 million funding package

TORONTO, Jan. 24, 2024 (GLOBE NEWSWIRE) -- Giyani Metals Corp. (TSXV:EMM, GR:A2DUU8) (“Giyani” or the “Company”), developer of the K.Hill battery-grade manganese project in Botswana (“K.Hill” or the “Project”) is pleased to announce that it has finalised the US$26 million funding package to progress K.Hill to Final Investment Decision (“FID”).

Highlights:

• Giyani has secured US$10 million of funding from ARCH Sustainable Resources Fund LP (“ARCH”), an ESG-mandated, private equity fund focused on strategic, long-term investments in natural resources and renewable energy.
• The US$10 million ARCH investment (the “ARCH Funding Package”) fulfils a key condition to drawdown of the US$16 million convertible loan facility secured by Giyani from the Industrial Development Corporation of South Africa Limited’s (“IDC”) (the “IDC Facility”).
• The total US$26 million funding package will progress K.Hill to FID, including an Optimized Feasibility Study for the Project (“Optimized FS”) and completing the construction, commissioning, and operation of the Company's demonstration plant (“Demo Plant”). The Demo Plant will produce battery-grade manganese (“HPMSM”) enabling Giyani to progress customer offtake discussions.
• The ARCH Funding Package consists of: (i) a US$4.8 million (approximately C$6.4 million) unit offering (the “ARCH Offering”) at C$0.117 per unit, with each unit consisting of one common share (each, a “Share”) and one common share purchase warrant (each, a “Warrant”) exercisable at a price of C$0.225 per Warrant for five years; and (ii) US$5.2 million for a 2% gross revenue royalty (the “ARCH Royalty”) which includes a 1% buy-back provision and an automatic step-down by 0.5% after 20 years or 2.5Mt of HPMSM production.
• Following completion of the ARCH Offering, ARCH will hold approximately 19.99% of Giyani’s issued Shares.

Danny Keating, President and CEO of the Company, commented:

“We are delighted to welcome ARCH as a shareholder and strategic partner to assist us in the long-term development of K.Hill. Attracting a group with such strong ESG credentials rewards the hard work that the team has undertaken to date and confirms our execution strategy.

After completing an incredibly thorough due diligence process performed by world-class engineering, marketing, and social and environmental consultants, we are very excited to welcome two high quality investor groups to the Company. Despite the difficult market conditions, the package we have secured minimizes dilution for current shareholders and gives us the financing to fundamentally de-risk the project and unlock the massive value contained within K.Hill.”