Funding secured: $60 million bridge loan for strategic Kabanga Nickel deals by Lifezone

Lifezone Metals Secures Bridge Financing for Kabanga Nickel Project

Lifezone Metals, a leading mining company, has announced significant progress in the development of its flagship Tanzanian nickel project, Kabanga. The company has secured a $60 million bridge loan from Taurus Mining Finance Fund No. 2, marking a crucial step towards advancing critical path items while concurrently pursuing long-term financing solutions.

The first tranche of the loan, amounting to $20 million, was disbursed on August 29, 2025, for early infrastructure development at the Kabanga Nickel site. The three-month interval funding structure provides financial flexibility for Lifezone to cover ongoing capital expenditures and operating costs through each development phase.

The bridge financing employs a milestone-based structure, with future disbursements contingent on meeting specific development benchmarks. Key long-lead items for underground mining operations, such as processing equipment, ventilation systems, dewatering infrastructure, and specialized underground mining equipment, will be procured as early works progress.

Lifezone is in advanced discussions with multiple counterparties regarding potential strategic transactions for the Kabanga project. The company might choose to maintain full ownership and independently develop the project, provided favorable project financing terms are secured. However, potential strategic partners offering capital at lower effective costs than traditional project finance are also being considered.

The Kabanga Nickel project stands out globally due to its exceptional combination of grade, scale, and metallurgical characteristics. With an expected 18-year mine life based on current reserves, Kabanga offers long-term production visibility for potential strategic partners and project financiers. At projected steady-state output of approximately 60,000 tonnes per year of nickel in product, Kabanga would rank among the world's largest nickel mines.

Comparable transaction analyses with high-quality nickel assets will provide valuation benchmarks. The valuation of any potential transaction for the Kabanga project will be measured against the net present value established in the feasibility study. The scarcity premium for tier-one nickel sulphide assets may support higher valuations due to increasing focus on securing critical minerals for energy transition technologies.

Tanzania's regulatory environment and Lifezone's relationships with government stakeholders are important considerations for any strategic transaction. How project development and operational risks are allocated between partners will significantly influence transaction structures. The company could secure substantial additional financing beyond the bridge loan, likely combining debt, equity, and potentially streaming or royalty arrangements.

Lifezone's proprietary processing technologies could create strategic synergies with partners or support premium valuations due to competitive advantages in capital efficiency, operating costs, or environmental performance. The company is engaged in potential shareholder discussions and long-term financing negotiations for the Kabanga Nickel Project, involving strategic partners and investors to secure funding and support for project development.

The strong interest from both industry players and financial investors, as indicated by several non-binding offers related to possible transactions at the project level, signals a positive outlook for the Kabanga Nickel Project. With the bridge financing in place, Lifezone is well-positioned to move forward with the development of this world-class nickel project.