Canadian junior exploration company Giyani Metals has signed a term sheet with Traxys Africa Trading for the provision of a $1-million convertible loan facility.
TSX-V- and Frankfurt Stock Exchange-listed Giyani will use the funds to finance the development and operation of its K.Hill and Otse reclamation projects, in Botswana, as well as to implement environmental management plans (EMPs) at the projects.
Under the terms of the transaction, Traxys will have the exclusive right to market all of the direct shipping ore (DSO) manganese material processed and produced at the projects.
Net proceeds from the sale of the DSO by Traxys will be used to reduce the principal amount outstanding under the convertible facility.
“We are very excited to be partnering with a global leader in metals marketing and trading like Traxys. These terms underline the shared vision we have with Traxys in terms of the importance and market potential of battery-grade manganese.
“We expect the completion of the definitive agreements and final approvals will occur expeditiously and, once established, we will be in a position to use the proceeds received from the convertible loan to implement the reclamation projects at K.Hill and Otse within the framework of the recently announced EMPs at both prospects,” CEO Robin Birchall said in a statement on Monday.