Modern Mining January 2022

MINING News

BHP invests in Kabanga Nickel and Lifezone in Tanzania

Kabanga Nickel Limited, a UK registered private company, is pleased to announce that BHP, a world leading resources com- pany, has invested US$40-million into Kabanga Nickel. The money will be used to accelerate the development of the Kabanga Nickel Project in Tanzania, the world’s largest development-ready nickel sulphide deposit. In parallel, BHP has invested US$10- million in Lifezone Limited to advance the roll-out of its patented hydrometallurgi- cal (hydromet) technologies. Lifezone hydromet is more cost-efficient than smelt- ing, has a significantly lower environmental impact and will ensure that finished Class 1

battery grade nickel, copper and cobalt will be produced in Tanzania. “We are delighted to announce this partnership with BHP. It highlights the world-class nature of the Kabanga deposit and its importance in helping meet the cru- cial decarbonisation challenge facing the world today. BHP is the ideal partner for Kabanga Nickel, bringing significant advan- tages and expertise that will enable us to move ahead with the project,” says Chris Showalter, Kabanga Nickel CEO. “BHP’s investment reflects the proj- ect’s strong ESG credentials and its role in improving environmental performance throughout the nickel value chain. In addi-

tion, BHP’s funding support of Lifezone’s hydromet technology – the future of sus- tainable metals processing – will drive progress towards a greener world. Through development of Kabanga and Lifezone hydromet, Tanzania will have a growing role in the supply of the battery metals needed to move to a global low carbon economy.” Future investment tranches in Kabanga Nickel have been agreed subject to cer- tain conditions, including a second tranche of US$50-million and the right for BHP to make a further investment in Kabanga Nickel subject to achieving certain agreed milestones. BHP will invest US$90-million in unse- cured convertible securities in Kabanga Nickel in two tranches: an initial US$40- million, followed by a further US$50-million on successful agreement of definitive doc- umentation and satisfaction of certain other conditions. The first tranche of US$40-million will convert into an 8,9% equity stake in Kabanga Nickel (7,5% see-through interest in Tembo Nickel Corporation) once approv- als and conditions are met. Once invested and on conversion the second tranche of US$50-million will increase BHP’s equity stake in Kabanga Nickel to 17,8% (15% see- through interest in Tembo), thereby valuing the project at US$658-million post-money. On satisfaction of additional conditions, BHP will secure the right to make a further investment in Kabanga Nickel subject to achieving certain agreed milestones. 

The chart, prepared by Wood Mackenzie and based on spot metal prices as at December 31, 2021, illustrates the superior mineral resources and mine-life of the Kabanga Nickel Deposit.

Perseus achieves near-mine exploration success in Ghana Perseus Mining Limited (ASX/TSX: PRU) has recorded further impressive drilling results at its Nkosuo prospect on the Agyakusu Prospecting Licence, just 7 km from its Edikan Gold Mine in Ghana. Results confirm Nkosuo hosts near-surface, granite-hosted gold mineralisation similar in style to that mined in Edikan’s Fobinso and Abnabna (AG) pits.

aged by similarities between the Nkosuo deposi t and the Fobinso and Abnabna deposi ts which we have already successfully devel- oped, mined and processed at Edikan. “Whi le we are work- ing towards completing a maiden mineral resource estimate for Nkosuo in the f irst hal f of CY2022, we intend to continue exploring on the Agyakusu, Agyakusu-

Resource definition drilling is ongoing. Perseus expects to com- plete a maiden Mineral Resource estimate for Nkosuo early in the June 2022 quarter. Nkosuo discovery has the potential to extend Edikan’s mine life beyond forecast end in FY2026 – 2027. Perseus’s MD and CEO Jeff Quartermaine says: “As Perseus moves closer to achieving our goal of producing 500 000 oz of gold per year, we have turned our sights to finding ways of sustaining this level of gold production to the end of the decade and beyond. “Our exploration programme at Nkosuo has returned impressive results that demonstrate this prospect’s potential to add to Edikan’s mine life, with further successful drilling. We are particularly encour-

Perseus’s MD and CEO Jeff Quartermaine.

DML and Domenase exploration licence areas, all of which are under option to Perseus and all of which are located within trucking dis- tance of our Edikan mill.” 

8  MODERN MINING  January 2022