Lifezone Metals acquires BHP’s stake in Tanzania nickel project

Lifezone Metals ended a final agreement with DDS BHP Billiton (UK) for the 17 % stock interest in Kabanga Nickel Limited (KNL), which has the ownership of the majority of the Nickel Kabanga project in Tanzania.

With this deal, Lifezone acquires the full royal royal for KNL, which has a 84 % stake in Tembo Nickel Corporation Limited (TNCL), the project’s enlightening operating company.

The Tanzania government has the remaining 16 % of TNCL.

Lifezone also gained full control of 100 % of OffTake from the Nickel Project.

Lifezone acquired the Kabanga project in 2021 and obtained a license to operate a multi -metal processing facility for nickel, copper and cobalt for the project in March last year.

The conditions of the deal include fixed cash payment decision of $ 10 million (7.43 million pounds), and a second delayed cash payment linked to the price of Lifezone shares after the first commercial production, and a total of 83 million dollars occurred to 75 million dollars if independent verification occurred through an event of the work plan.

BHP has agreed to a 12 -month imprisonment on Lifezone shares and any intended stock sales must be offered to Lifezone first.

“This represents an important milestone for Lifezone while strengthening the ownership of the Kabanga Nickel project. BHP was a supportive and compressed partner, and its investments contributed to the advancement of the project, and their exit coincided with the transfer of the project to the next stage of development,” said Lifezone CEO, CEO of Lifezone.

“Our focus is on the presentation of a global project of low -cost nickel that benefits all stakeholders, including the Tanzania government and local communities.”

Lifezone, Standard Charged, for short term financing and strategic advisory services to support early construction work and progress towards FID.

Société générale is recommended to fund the project, with the interest of potential lenders, including export credit agencies.

“This deal is to own 100 % of Kabanga Nickel Limited that allows life to be a technical and commercial alignment and ESG in full [environmental, social and governance] The strategy and we are moving towards the final investment decision. We are committed to handing over the project responsible and creating a long -term value to all our stakeholders. “

Moreover, Lifezone presented a summary of the technical report to study the feasibility of the Kabanga project, which confirms its economic capabilities.

The study creates primary metal reserves for the first nickel sulfide project.