US LNG exports surge but will buyers in China turn up?
NEW YORK - Lifezone Metals Limited (NYSE:LZM), currently trading at $4.47 and showing strong return over the last three months despite a 31.65% decline over the past six months, has completed an agreement to acquire BHP Billiton’s 17% equity interest in Kabanga Nickel Limited, giving Lifezone full ownership of the company that holds an 84% stake in the Kabanga Nickel Project in northwestern Tanzania. According to InvestingPro analysis, the company maintains a stronger cash position relative to its debt obligations, though it’s currently experiencing rapid cash burn.
Following the transaction, Lifezone now controls 100% of the offtake from the project, with the Government of Tanzania maintaining its 16% interest in Tembo Nickel Corporation Limited, the local operating company.
The deal involves deferred consideration with a maximum cap of $83 million, structured as two payments: a $10 million fixed payment due after either the Final Investment Decision or when Lifezone raises $250 million in funding, and a second payment linked to Lifezone’s share price performance following first commercial production.
Keith Liddell, Lifezone’s Founder and Chair, said the transaction allows the company to "fully align our technical, commercial, and ESG strategy as we advance Kabanga toward the Final Investment Decision."
The company has engaged Standard Chartered Bank as financial adviser for a short-term development financing package to fund early works construction and resettlement activities. Societe Generale is advising on project financing, which may include potential support from the U.S. International Finance Corporation.
The Kabanga project is described in the company’s press release as "one of the world’s largest and highest-grade undeveloped nickel sulfide deposits." Lifezone plans to apply its hydrometallurgical technology to process the nickel, copper, and cobalt from the site.
If the project’s Resettlement Action Plan is independently verified to align with International Finance Corporation standards within 12 months, the total consideration payable to BHP will be reduced to a maximum of $75 million.
As part of the agreement, BHP has committed to a 12-month lock-up period for its Lifezone shares and must offer any shares it intends to sell to Lifezone before transferring them to third parties. With a current price-to-book ratio of 3.99x and analyst price targets ranging from $8.00 to $12.50, investors seeking deeper insights into Lifezone’s valuation and growth potential can access 12 additional exclusive ProTips and comprehensive financial analysis through InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.