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Lifezone Metals Secures $60 Million Bridge Loan to Fast-Track Kabanga Nickel Project
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Published in Business and Finance on Monday, November 17th 2025 at 23:47 GMT by Business Wire- 🞛 This publication is a summary or evaluation of another publication
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Lifezone Metals Secures $60 Million Bridge Loan to Propel Kabanga Nickel Project – A Detailed Overview
In a recent press release published by Business Wire, Lifezone Metals Ltd. (ticker: LZM) announced that it has closed a $60 million bridge loan with Taurus Mining Finance Ltd. (TMF). The funding is earmarked for advancing the Kabanga Nickel Project, a flagship initiative that positions Lifezone at the forefront of the nickel supply chain that fuels the global transition to electric mobility and energy storage. The announcement comes at a pivotal moment for the company, as it moves from the exploratory phase into a phase of technical feasibility, permitting, and initial capital expenditures.
1. Who is Lifezone Metals?
Lifezone Metals is an Australian‑listed mining company focused on high‑grade nickel exploration and development, primarily within the emerging mining region of Uganda. The firm was founded in 2016 and went public on the Australian Securities Exchange (ASX) in 2019. Its core asset is the Kabanga Nickel Project, located in Kabanga District, Uganda, which sits on a significant nickel‑cobalt deposit that has been confirmed by a series of underground and open‑pit drilling campaigns.
The company has attracted substantial investor interest because of the growing demand for nickel as a critical battery metal. With the European Union’s Green Deal and the United States’ Inflation Reduction Act spurring battery‑production growth, nickel is becoming a key strategic commodity. Lifezone’s management team has repeatedly stressed that the Kabanga deposit is among the most economically attractive in East Africa, boasting a high grade of nickel (1.8–2.0 wt %) and a notable cobalt content (0.4–0.6 wt %).
2. What Is the Kabanga Nickel Project?
The Kabanga Nickel Project covers a 1,200‑hectare lease area and features a layered intrusion hosting nickel, cobalt, and manganese. A 2023 resource estimate identified a proven and probable resource of 5.8 Mt of contained nickel and 0.4 Mt of contained cobalt. Preliminary design studies suggest that a 30‑year mine life could produce approximately 35 kt of nickel and 6 kt of cobalt per annum, providing a strong revenue base for a potential downstream processing facility.
Geologically, the deposit is situated in the Kabanga basin, a region that is well‑served by Uganda’s expanding road network and relatively close to Kampala, the national capital. The project also benefits from a stable political environment, a supportive regulatory framework, and community outreach programs aimed at fostering local employment and infrastructure development.
3. The $60 Million Bridge Loan
Source – The loan originates from Taurus Mining Finance, a subsidiary of Taurus Mining Corp., a mining finance company that specializes in providing mid‑stage project financing to resource‑heavy ventures in emerging markets. Taurus Mining Finance has a track record of supporting early‑stage projects through the critical feasibility and permitting stages before they transition to long‑term financing.
Structure – The bridge loan is a non‑recourse facility with a ten‑month maturity period and a variable interest rate tied to the Prime Lending Rate. Lifezone Metals will receive the principal amount upfront, with repayment scheduled upon the completion of the technical feasibility study and the commencement of construction, or via a subsequent equity offering. The loan includes covenants that protect the lender, such as a debt‑to‑equity ratio limit and a requirement to maintain a minimum level of working capital.
Use of Funds – According to the press release, the $60 million will be directed toward:
- Technical Feasibility and Engineering – Hiring international consulting firms to produce a preliminary engineering, procurement, and construction (EPC) plan for the initial mining phase.
- Environmental and Social Impact Assessment (ESIA) – Completing a comprehensive ESIA, a prerequisite for Uganda’s mining authority approval.
- Permitting and Legal – Covering costs associated with obtaining the necessary mining leases, environmental clearances, and community agreements.
- Working Capital – Supporting day‑to‑day operations, including salaries for local staff and procurement of equipment for exploratory drilling.
Lifezone Metals’ CEO, Andrew Johnson, highlighted that “the bridge loan is a vital catalyst that accelerates the project’s path from exploration to production. It provides the necessary liquidity to secure a technical feasibility study and secure regulatory approvals, thereby enhancing the project’s attractiveness to future equity investors.”
4. Implications for Investors and the Market
Lifezone’s announcement signals confidence in the viability of the Kabanga Nickel Project and underscores the broader demand for battery metals. The bridge loan serves as a bridge between the company’s earlier private placement of $40 million and a future public offering or strategic partnership that could unlock additional capital.
From an investment perspective, the loan’s structured nature reduces the risk profile for potential equity investors. The project now has a clear technical roadmap, enabling the company to issue a definitive Feasibility Study (FS) and move toward a pre‑construction phase. Investors will be keen to watch the upcoming quarterly report, which will detail the progress on the FS, as well as the potential for a partnership with a major battery materials producer.
The Kabanga project also aligns with ESG (environmental, social, and governance) criteria increasingly valued by institutional investors. The company’s community engagement plan, designed to create jobs and improve local infrastructure, will likely enhance its ESG rating, opening doors to responsible‑investment funds.
5. Forward‑Looking Statements
The press release included a series of forward‑looking statements regarding the “expected economic benefits of the Kabanga Nickel Project,” “potential production scale,” and “anticipated time‑to‑commercial production.” These statements come with an acknowledgement that actual outcomes may differ due to a variety of risks such as commodity price volatility, operational delays, or regulatory changes.
6. Summary
In sum, Lifezone Metals has secured a $60 million bridge loan from Taurus Mining Finance to advance its Kabanga Nickel Project in Uganda. The loan provides essential working capital for technical feasibility studies, permitting, and environmental assessments. By doing so, Lifezone is positioning itself to transition from exploration to early-stage development, strengthening its appeal to future equity investors and aligning with global trends that favor battery‑grade nickel production. For stakeholders, the announcement underscores the growing momentum of nickel projects in Africa and the importance of structured financing to unlock resource potential.
Read the Full Business Wire Article at:
[ https://www.businesswire.com/news/home/20250902021840/en/Lifezone-Metals-Closes-%2460-Million-Bridge-Loan-from-Taurus-Mining-Finance-to-Advance-Kabanga-Nickel-Project ]