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OAKVILLE, Ontario, March 25, 2020 (GLOBE NEWSWIRE) -- Giyani Metals Corp. (TSXV:EMM) (FRANKFURT:KT9) (WKN:A2DUU8) (“Giyani” or the “Company”) is pleased to announce that it has received a letter of interest (“LOI”) confirming in- principal project finance support for its K.Hill manganese project in Botswana. The letter was issued by Atradius Dutch State Business (“Atradius”), the official administrator of the Export Credit Agency (“ECA”) of the Netherlands, under the export credit insurance scheme of the Dutch government.
Following a preliminary assessment of Giyani’s K.Hill manganese project in Botswana, Atradius, on behalf of the Dutch government, issued an LOI confirming in principle project finance support under the Dutch export credit guarantee scheme (“ECA Cover”).
Atradius is the official ECA that administers the ECA scheme for the government of the Netherlands. In order to promote Dutch exports, Atradius offers credit insurance products for projects involving the export of goods and services from the Netherlands. ECA Cover from Atradius is often used to assist Dutch exporters in winning export transactions and increasing the capacity to raise finance from banks for projects involving Dutch exports.
The Dutch ECA scheme was identified as applicable to Giyani’s K.Hill manganese project based on the current involvement of Royal IHC as Giyani’s engineering partner for its ongoing feasibility study and preferred EPC contractor for the construction of the K.Hill manganese project, subject to meeting minimum Dutch content requirements.
Interest rates charged by lenders on debt insured by ECA Cover are typically lower than commercial rates, as repayment of part of the debt is insured, with longer tenor, and favourable repayment schedule also a feature of ECA supported debt.
The LOI represents the first milestone in Giyani’s engagement with Atradius. The next step involves further due diligence by Atradius and, assuming a satisfactory outcome, a positive decision to provide ECA Cover.
It is common to work with one or more financial institutions, in parallel with Atradius, with the intention to fund the transaction supported by insurance from Atradius. The LOI itself does not constitute a commitment to provide ECA cover and there is no certainty that an agreement will be reached between the parties. Giyani will assist Atradius through its required due diligence investigations.
Robin Birchall, CEO of Giyani commented:
“The LOI from Atradius is an important milestone in Giyani’s progress to secure project financing for the K.Hill manganese project and continues to reinforce the Company’s aim to become a leading independent supplier of high purity electrolytic manganese metal (HPEMM) to the global battery electric vehicle market.
I would like to thank our Dutch engineering partner and preferred EPC contractor, Royal IHC, for their help in obtaining this preliminary, yet significant, first step towards further support from Atradius. The LOI is a testament to the systematic and structured development of the K.Hill project as many startup mineral resource developers fail to meet the criteria for initial ECA support. We look forward to working with Atradius through its due diligence process, which will benefit from the ongoing work on the feasibility study for the K.Hill project.
This latest development represents a major potential boost to Giyani’s efforts in accelerating the K.Hill project financing plans by giving us broader and easier access to the debt markets.”
Giyani Metals Corp. is a Canadian junior exploration company focused on creating shareholder value by accelerating the development of its high-grade manganese project in the Kanye Basin, Botswana, Africa. Additional information and corporate documents may be found on www.sedar.com and on Giyani Metals Corp. Website: https://giyanimetals.com/.
Atradius Group is one of the world’s leading credit insurers with over 90 years of credit management experience. Atradius acts as the Export Credit Agency (ECA) for the Netherlands through its subsidiary Atradius Dutch State Business NV. The mandate of Atradius Dutch State Business is to promote Dutch exports and investments abroad. In return, the ECA provides credit insurance, thereby reducing the cost of borrowing compared with commercial lending.
On behalf of the Board of Directors of Giyani Metals Corp.
Robin Birchall, CEO
Giyani Metals Corporation
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
The securities described herein have not been registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and accordingly, may not be offered or sold to, or for the account or benefit of, persons in the United States or “U.S. persons,” as such term is defined in Regulation S promulgated under the U.S. Securities Act (“U.S. Persons”), except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the Company’s securities to, or for the account of benefit of, persons in the United States or U.S. Persons.
Forward Looking Information
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements in this news release, other than statements of historical fact, that address events or developments that Giyani expects to occur, are “forward-looking statements”. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “does not expect”, “plans”, “anticipates”, “does not anticipate”, “believes”, “intends”, “estimates”, “projects”, “potential”, “scheduled”, “forecast”, “budget” and similar expressions, or that events or conditions “will”, “would”, “may”, “could”, “should” or “might” occur.
All such forward-looking statements are based on the opinions and estimates of the relevant management as of the date such statements are made and are subject to certain assumptions, important risk factors and uncertainties, many of which are beyond Giyani’s ability to control or predict. Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. In the case of Giyani, these facts include their anticipated operations in future periods, planned exploration and development of its properties, and plans related to its business and other matters that may occur in the future. This information relates to analyses and other information that is based on expectations of future performance and planned work programs.
Giyani’s forward-looking information is based on the reasonable beliefs, expectations and opinions of their respective management on the date the statements are made, and Giyani does not assume any obligation to update forward looking information if circumstances or management’s beliefs, expectations or opinions change, except as required by law. For the reasons set forth above, investors should not place undue reliance on forward-looking information. For a complete discussion with respect to Giyani and risks associated with forward-looking information and forward-looking statements, please refer to Giyani’s financial statements and related MD&A, all of which are filed on SEDAR at www.sedar.com.
GIYANI METALS CORP.
1155 North Service Road West, Unit 11
Oakville, Ontario L6M 3E3