Lifezone Secures $15m to Accelerate Tanzania’s Kabanga Nickel Project

Lifezone Metals has taken another step toward advancing the Kabanga nickel project in Tanzania after securing 15 million dollars through a direct share offering. This fresh capital injection reinforces the company’s commitment to moving the project toward a final investment decision targeted for mid 2026. Coming shortly after a 60 million dollar loan agreement, the new funding strengthens Lifezone’s financial runway for ongoing technical work, regulatory processes, and site development, all of which are essential for positioning Kabanga as one of the most significant future nickel suppliers in Africa.

The newly raised funds will be directed toward continued exploration, engineering studies, and project preparation activities that support Kabanga’s transition from advanced study to pre construction readiness. According to the revised feasibility study, Kabanga has the potential to produce approximately 902,000 tons of nickel over an 18 year mine life, underscoring the deposit’s scale and long term value. Total project investment is estimated at 942 million dollars, reflecting the intensive capital required to develop a high grade underground operation alongside Lifezone’s planned hydrometallurgical processing solution. Lifezone has also moved to acquire BHP’s stake in the project, consolidating greater operational control and ensuring strategic alignment as the project advances.

The financing push is taking place against the backdrop of a weak global nickel market. Prices have fallen roughly 60 percent since 2022 amid oversupply, particularly from Indonesia’s rapidly expanding production capacity. Despite this challenging environment, Lifezone considers Kabanga a strategic asset that will play an important role in the global energy transition due to the growing demand for high purity nickel used in electric vehicle batteries. The company’s long term outlook is shaped by expectations that future supply bottlenecks for battery grade nickel will eventually emerge, creating opportunities for high quality, ethically sourced production from Africa.

Kabanga is also being advanced under a collaborative ownership structure that includes a 16 percent stake held by the Government of Tanzania through a joint venture arrangement. This framework is designed to ensure shared benefits, streamline permitting, and enhance local participation in one of the country’s most promising mineral ventures. The continued progress toward securing permits, completing technical studies, and finalizing financing demonstrates Lifezone’s determination to keep the project on track despite unfavorable market conditions.

Overall, Lifezone’s latest capital raise highlights clear momentum at Kabanga at a time when many nickel projects globally face delays or cancellations. By maintaining steady progress, the company is positioning Tanzania to become an important supplier of battery grade nickel, which could strengthen the country’s mining economy, attract additional downstream investments, and support Africa’s expanding role in the global clean energy supply chain.

Mini Glossary

• Feasibility study: A detailed assessment of a project’s technical and economic viability.
• Hydrometallurgical processing: A chemical method of extracting metals from ore using aqueous solutions.
• Battery grade nickel: High purity nickel used in electric vehicle battery cathodes.
• Final investment decision (FID): The point at which a company commits to full project financing and construction.
• Joint venture structure: A business arrangement in which two or more parties share ownership, risks, and returns.