Name of the Project
K.Hill manganese project.

Location
The Kanye Basin, in south-eastern Botswana.

Project Owner/s
Giyani Metals Corp.

Project Description
A preliminary economic assessment (PEA) has demonstrated the strong potential of the project. The PEA is based on an estimated mineral resource, at a cutoff grade of 18% manganese oxide, of 1.1-million tonnes grading 31.2% manganese oxide, 8.9% aluminium oxide, 26.3% silicon dioxide and 16.9% iron (III) oxide.

The project envisages an operation with a nine-year life-of-mine, producing 245 000 t of high-purity electrolytic manganese metal.

The PEA proposes traditional truck-and-shovel mining methods. The proposed process for the production of electrolytic manganese metal includes comminution, leaching, solid/liquid separation and solvent extraction, as well as electrowinning and refining.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 10% discount rate, of C$491-million and an after-tax internal rate of return of 90.6%, with a payback of 1.5 years.

Capital Expenditure
Preproduction capital expenditure is estimated at $369-million.

Planned Start/End Date
The project aims to break ground in July 2020.

Latest Developments
Following a preliminary assessment of the project, Atradius Dutch State Business, the official administrator of the Export Credit Agency (ECA) of the Netherlands, has issued a letter of interest (LoI) confirming in-principle project finance support for Giyani Metals Corporation’s K.Hill manganese project.

The LoI was issued under the export credit insurance scheme of the Dutch government.

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.

Key Contracts and Suppliers
SRK Consulting (PEA).

Contact Details for Project Information
Giyani Metals Corp, tel +1289291 4032 or email info@giyanimetals.com.