Lifezone Metals priced a $15 million direct offering of 4,411,764 ordinary shares at $3.40 each, accompanied by warrants with a $4.00 exercise price exercisable for four years. The transaction is expected to close on or about November 12, 2025, providing the company with immediate working capital and a new source of equity to support its flagship Kabanga Nickel Project and other strategic initiatives.
The proceeds will be directed toward accelerating the development of the Kabanga Nickel Project, including exploration, project staffing, and other general corporate purposes. The company also plans to use the funds to expand its proprietary hydrometallurgical technology, which is positioned as a cleaner, more cost‑effective alternative to traditional smelting for nickel, copper, and cobalt extraction.
Lifezone’s cash position as of June 30, 2025 stood at $12.5 million, down from $29.3 million at the end of 2024. The company’s six‑month earnings per ordinary share were $0.03 basic and a diluted loss of $0.08, compared with a $0.14 loss in the same period of 2024. The recent $60 million bridge loan from Taurus Mining Finance, secured in September 2025, underscores the company’s ongoing effort to secure project‑level financing while the direct offering provides additional liquidity.
The Kabanga Nickel Project, located in Tanzania, is one of the world’s largest undeveloped nickel sulfide deposits. A feasibility study filed in July 2025 outlines an 18‑year mine life and estimates pre‑production capital expenditures of $942 million. Lifezone’s hydromet technology is expected to reduce energy consumption, lower emissions, and cut operating costs, giving the project a competitive edge. The company is also exploring a partnership with Glencore to recycle platinum group metals, further diversifying its revenue streams.
On the day of the announcement, Lifezone’s shares rose more than 4 percent, reflecting investor confidence in the capital raise. However, the stock had been trending downward in the preceding ten days, with a 29.5 percent decline, indicating that while the immediate funding is welcomed, broader market sentiment remains cautious due to the company’s high capital intensity and the volatility typical of junior mining stocks.
CEO Chris Showalter emphasized that the direct offering “strengthens our balance sheet and provides the necessary capital to advance the Kabanga project and accelerate the deployment of our hydromet technology.” He added that the company’s mission to eliminate polluting smelters aligns with growing ESG demands in the battery‑metal supply chain.
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