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Botswana manganese hopeful Giyani Metals to raise $10m through share issue - Mining MX

Last updated Thursday, November 11, 2021 06:00 ET , Source: NewsService

GIYANI Metals, a Toronto-listed firm developing a manganese project in Botswana, announced it would raise $10m through the issue of shares.

Proceeds would be used for the development of the $159m K.Hill Project which has been scoped to produce an initial 100,000 tons a year of battery grade manganese sulphate, also known as ‘manganese salt’.

The production estimate does not account for additional nearby resources which the company is currently exploring. K.Hill Project is located near Lobatse on the border with South Africa.

Based on a preliminary economic assessment, the mine will achieve an internal rate of return of 80% and has a net present value of $332m. Start up capex is estimated to be $118m and provide a three-year payback.

In an investor presentation in October, Giyani Metals said funding and construction of the mine would begin in the second half of 2022 and extend into 2023.

Manganese sulphate is used in the manufacture of lithium-ion electric vehicle batteries which are expected to start replacing a portion of the automobile market currently met by the internal combustion engine.

According to Giyani Metals, the company’s K.Hill Project s the highest valued project in its peer group on an NPV per ton of manganese resources basis. Set against this, Giyani trades at the lowest price to NAV.

The company was last quoted at 40 Canadian cents per share after falling 21% on Wednesday. It is valued at C$69m.

Read Full Story: https://www.miningmx.com/trending/48103-botswana-manganese-hopeful-giyani-metals-to-raise-10m-through-share-issue/

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