Canadian junior exploration company Giyani Metals Corporation has received a letter of interest (LoI) confirming in-principle project finance support for its K.Hill manganese project in the Kanye basin, Botswana.
The LoI was issued by Atradius Dutch State Business (Atradius), the official administrator of the Export Credit Agency (ECA) of the Netherlands, under the export credit insurance scheme of the Dutch government.
Following a preliminary assessment of the project, Atradius, on behalf of the Dutch government, issued an LoI confirming in-principle project finance support under the Dutch export credit guarantee scheme.
The Dutch ECA scheme was identified as applicable to the project based on the current involvement of Giyani’s engineering partner Royal IHC for its ongoing feasibility study and preferred engineering procurement and construction contractor for the construction of the project, subject to meeting minimum Dutch content requirements.
The LoI represents the first milestone in Giyani’s engagement with Atradius, and the next step involves further due diligence by Atradius and, assuming a satisfactory outcome, a positive decision to provide ECA cover.
Giyani CEO Robin Birchall says the LoI from Atradius is an important milestone in Giyani’s progress to secure project financing for the project and continues to reinforce the company’s aim to become an independent supplier of high-purity electrolytic manganese metal to the global battery electric vehicle market.
He adds that the LoI is a testament to the systematic and structured development of the K.Hill project as many startup mineral resource developers fail to meet the criteria for initial ECA support.