By: African mining market

Lifezone Metals has launched a US$15 million direct share offering to advance work on its Kabanga nickel project in Tanzania, the company said in a statement dated 10th November 2025. The move follows a US$60 million loan concluded with Taurus Mining Finance several weeks earlier.

The U.S.-based mining firm aims to use these funds to sustain project development as it prepares for a final investment decision (FID) by mid-2026. Lifezone said proceeds from the share offering will go toward exploration work at Kabanga but did not provide technical details.

According to a revised feasibility study released earlier this year, Kabanga could deliver about 902,000 tons of nickel over 18 years, alongside copper and cobalt by-products. The company estimates total investment needs at US$942 million.

In July, Lifezone announced an agreement to acquire BHP’s stake in the project, a move designed to consolidate its control and accelerate development. “This transaction will allow us to strengthen our position on one of the most promising nickel deposits in Africa,” the company stated at the time.

The fresh fundraising comes amid a global nickel downturn. Prices have fallen about 60% since 2022 due to persistent market oversupply, with futures recently trading near US$15,000 per ton, according to Trading Economics.

Despite the weak price environment, Lifezone continues to push forward with Kabanga, viewing the project as a strategic long-term asset for the energy transition. The company must still secure multiple mining permits from Tanzanian authorities before construction begins. The Tanzanian government holds a 16% stake in the future mine through a joint venture arrangement.