Giyani Metals, developer of the K.Hill Battery-Grade Manganese Project in Botswana, has entered into an addendum to its existing convertible loan facility agreements with the Industrial Development Corporation of South Africa (IDC), which provides for amendments to the loan facility made available to its wholly-owned subsidiary, Giyani Metals South Africa (GMSA), including an increase of ZAR29.9 million. ZAR29.9 million was drawn down by GMSA on March 9, 2026, and received on March 12, 2026.
The additional funds extended the operation of the company’s Demonstration Plant in Johannesburg, South Africa, and has resulted in the production of additional high purity manganese sulphate monohydrate (HPMSM) which is being prepared for analysis by interested offtakers. The continued operation of the Demonstration Plant has confirmed demonstration plant scale reagent consumptions and at a large scale, has contributed to our operating knowledge of the crystallizers and purge management. This data will be incorporated into Giyani’s definitive feasibility study (DFS) on the Project. As a result, the DFS is now expected to be completed during Q2 2026.
Under the terms of the Addendum, dated February 26, 2026, the following are the key terms that have been amended:
- the Loan Facility Amount (as such term is defined in the GMSA Loan Facility Agreement) has been increased by ZAR29,900,000 to a total amount of ZAR264,275,000;
- the Maximum Combined Loan Facility Amount under the IDC facilities has been increased by ZAR29,900,000 to ZAR329,900,000;
- the Demonstration Plant Completion Deadline Date was extended to June 30, 2026, although the Company does not intend to recommence operation of the Demonstration Plant;
- additional security over certain project assets and information has been granted in favour of the IDC;
- Giyani has undertaken and has satisfied the provision of funding not less than ZAR40,000,000 to its subsidiaries to support completion of its DFS; and
- subject to applicable securities laws and stock exchange approvals, the IDC will have the right to nominate one director to the board of Giyani if, pursuant to any conversion of the loan facilities, the IDC holds more than 10% of the issued and outstanding common shares of the Company.
The Addendum is subject to final acceptance from the TSX Venture Exchange. The Addendum follows an initial addendum executed on September 1, 2025, which updated certain project development timelines and funding requirements under the IDC facilities, and includes a provision that the Company raise an additional ZAR38,000,000 (approximately CAD3,000,000) by September 30, 2026 to support pre-construction activities, although the Company believes the timeline and size of such financing is being further revisited by the parties. This previously agreed amount and accompanying deadline is currently under discussion between IDC and the Company to reflect the current circumstances and will be amended upon completion of the DFS.
All other terms of the IDC facilities remain as announced, including the potential conversion rights of IDC, as further set out in the press release of the Company dated November 30, 2023.
Nigel Robinson, Interim Executive Chair of the Company commented: “We would like to thank the IDC for being such a supportive partner of Giyani. The continued operation of the Demonstration Plant has provided additional learnings that are being incorporated into the DFS. This has resulted in a short delay to the publication of the DFS into Q2 2026. We look forward to announcing these results to the market as soon as they become available which will enable Giyani to ramp up towards securing offtake agreements and advance project financing discussions.”
