Lifezone Metals Ltd

Lifezone filed the Kabanga feasibility study, which was delayed from its earlier end-Q3 2024 target, and declared the project's first-ever mineral reserves: 52.2 million tonnes (43.9 million attributable to Lifezone) at 1.98% nickel, 0.27% copper and 0.15% cobalt, supporting an 18-year mine life. On a 100% basis, it shows pre-production capital of $942M, after-tax NPV of $1.58B at an 8% discount rate, and a 23.3% after-tax IRR, using $8.49/lb nickel. The board approved the study and directed management to move to execution readiness and project financing; the CEO targets a final investment decision in 2026. This resolves the long-running question of reserves and the feasibility study timeline, but funding is still to be secured.

resource reserve update

Lifezone signed a definitive agreement on 18 July 2025 to buy BHP's 17% stake in Kabanga Nickel Limited, which would leave Lifezone owning 100% of KNL (which holds 84% of Tembo Nickel; the Government of Tanzania holds the other 16%). BHP's earlier arrangements, including the T2 Option Agreement, are terminated, so the Joint Financial Model condition for BHP's T2 investment no longer applies. Payment is deferred: a fixed $10M due within 30 days after the earlier of 12 months after final investment decision or Lifezone raising $250M in total funding, plus a second payment due 12 months after first commercial production, tied to Lifezone's share price (reference $4.16, reference amount $28M). Total consideration is capped at $83M, or $75M if the resettlement plan is independently verified as aligned with IFC Performance Standard 5 within 12 months of completion. BHP agrees not to sell its Lifezone shares for 12 months, then must offer them to Lifezone first. Lifezone also says it now controls 100% of Kabanga offtake, and that a short-term financing package with Standard Chartered is 'well advanced' and project finance talks with Societe Generale are progressing.

business combination

Lifezone issued a December 2024 resource update for Kabanga. Attributable Measured and Indicated resources are 46.8 Mt at 2.09% nickel (up from 43.6 Mt at 2.02% in November 2023, though that earlier figure was stated on a total basis rather than the attributable basis used here), and Inferred are 11.3 Mt. 81% of tonnage is now in the higher-confidence categories (71% before), and there are still no mineral reserves. The cut-off grade was raised from 0.58% to 0.73%/0.77% nickel-equivalent. The company will update the feasibility study timeline after further technical evaluations, so the earlier end-Q3 2024 target is no longer reaffirmed. It is also evaluating a Japanese strategic investment and offtake sale under a JOGMEC MOU, and working on a Joint Financial Model that is a condition for BHP's T2 investment.

drilling result

Lifezone closed in escrow a US$50 million private placement of unsecured convertible debentures with a consortium led by Harry Lundin (Bromma Asset Management) and Rick Rule. They run 48 months at SOFR plus 4.0% (SOFR floor 3.0%), with interest paid in a mix of cash and shares for the first two years and cash after. Holders can convert at US$8.00 per share, so conversion would add shares and dilute existing holders. Proceeds are to advance Kabanga and for general corporate purposes. This is the company's first disclosed debt, since earlier filings showed none.

capital raising announcement

Lifezone received a Multi-Metal Processing Facility Licence from the Government of Tanzania for the planned Kahama refinery, which would refine nickel, copper and cobalt from Kabanga. The site is in the Buzwagi area, now declared a Special Economic Zone with tax and other economic benefits, and Lifezone says it takes on no legacy closure liabilities from the former gold mine. The operating entity, Tembo Nickel, is 16% owned by the Government of Tanzania. The feasibility study is still stated as on track for Q3 2024. This is a permit step for the refinery already proposed at Kahama.

regulatory community update

Lifezone signed a term sheet with a Glencore subsidiary for a US-based joint venture to recycle platinum, palladium and rhodium from used catalytic converters using Lifezone's Hydromet technology. Phase 1 pilot testing costs an expected $3 million, with test work due to finish in the first half of 2024; moving to Phase 2 (a facility expected to cost about $15-20 million) depends on the pilot results and a feasibility study, and it is only a term sheet at this stage.

joint venture update

Lifezone published an updated mineral resource estimate for the Kabanga nickel project in Tanzania (Lifezone's attributable share is 69.7%). Measured and Indicated resources rose 69% in tonnage versus the February 2023 estimate, to 43.6 million tonnes at 2.02% nickel; Inferred resources rose 20% to 17.5 million tonnes. The company says the feasibility study is expected to be completed by the end of Q3 2024, and the filing states there are no mineral reserves yet.

resource reserve update

Lifezone Metals closed its business combination with GoGreen Investments (a blank-check company) on July 6, 2023 and began trading on the NYSE as LZM (shares) and LZMW (warrants). It received about $86.6 million gross (about $70.2 million from PIPE investors and about $16.4 million from GoGreen's trust account after redemptions), on top of BHP's previously announced $90 million into Kabanga Nickel Limited and $10 million into Lifezone Limited.

business combination