Lifezone Metals owns the Kabanga nickel project, which is estimated to have a mineral resource of about 44 million tons at an average nickel grade of 2.6%, 0.35% copper and 0.19% cobalt
Lifezone Metals to merge with SPAC GoGreen Investments. (Credit: Rolf Dobberstein from Pixabay)
Cleaner battery metals producer Lifezone Metals has agreed to merge with GoGreen Investments, a special purpose acquisition company (SPAC) to become a publicly traded company.
The proposed SPAC merger values Lifezone Metals at pro forma implied equity value of around $1bn with total net proceeds of $318m.
In addition, investors have committed more than $70m in a common equity private placement (PIPE) at $10 per share.
Under the terms of the SPAC deal, Lifezone Metals will be listed on the New York Stock Exchange (NYSE) upon the completion of the proposed merger.
Lifezone Metals owns the Kabanga nickel project in North-West Tanzania.
The Kabanga nickel project, which is one of the largest undeveloped nickel deposits in the world, is estimated to have a mineral resource of about 44 million tons at an average nickel grade of 2.6%, 0.35% copper and 0.19% cobalt.
Recently, BHP agreed to invest an additional $50m in the nickel project to increase its direct equity interest in the project to 17%.
Lifezone Metals founder Keith Liddell said: “As the world shifts towards EVs, Lifezone aims to prove that greener, more affordable solutions for the energy transition are indeed possible.
“Preparing for the demand for battery metals to support production of the estimated 325 million EVs on the road by 2030 needs to start now – as automakers have reportedly stated the battery metals they use have to be low-carbon.
“Our partnership with BHP, a leading global resources company, supports the development of the Kabanga nickel project through additional funding and also gives us world-class experience and expertise to execute and scale.”
Lifezone Metals’ proprietary hydrometallurgical mineral processing technology is said to have the potential to mitigate carbon emissions in battery metals refining compared to conventional smelting and refining.
It also completely cuts off the harmful sulphur dioxide emissions from the process.
The company is said to use the technology at the Kabanga project to produce refined high-grade nickel, copper cathode and cobalt.
GoGreen Investments CEO John Dowd said: “The company is developing what it believes will be one of the cleanest, most socially responsible nickel production facilities in the world.
“The propriety technology has the potential to significantly lower the cost, as well as the environmental and climate footprint, of mineral processing.”