The business combination establishes a New York Stock Exchange-listed pure-play nickel resource and cleaner technology company with flagship project in North-West Tanzania
A nickel mine. (Credit: Ceever/ Wikipedia)
Lifezone Metals (Company), a contemporary metals company that adds value throughout the battery metals supply chain, has announced the successful completion of the business combination between Lifezone Holdings Limited (LHL) and GoGreen Investments Corporation (GoGreen), formerly a blank check company listed on the New York Stock Exchange (NYSE).
The implementation of the business combination involved the formation of a new holding company, Lifezone Metals, which facilitated the merger between GoGreen and a wholly-owned subsidiary of Lifezone Metals. As a result, GoGreen no longer exists, and its shareholders received shares in Lifezone Metals. Additionally, Lifezone Metals acquired LHL, making it an operating wholly-owned subsidiary, and the shareholders of LHL also received shares in Lifezone Metals. This successful completion of the business combination marks a significant milestone as it establishes the NYSE’s first dedicated company focused on nickel resources and cleaner technology.
The Company has successfully secured gross proceeds of approximately $86.6m through the transaction. This amount includes around $70.2m from a private investment in public equity (PIPE) and approximately $16.4m in cash obtained from GoGreen’s trust account, after accounting for redemptions. It is important to note that these proceeds are separate from the previously announced investments made by BHP Billiton (UK) DDS Limited (BHP). BHP has invested $90m in Kabanga Nickel Limited (KNL), the entity that owns the Kabanga Project in North-West Tanzania, and an additional $10m in Lifezone Limited, both of which are subsidiaries of the Company.
Lifezone Metals CEO Chris Showalter said: “With the electrification of transportation inflecting and the demands to decarbonise our economies broadly intensifying, we believe Lifezone Metals stands to be a critical enabler of ensuring that in the process of attempting to create a greener tomorrow through the replacement of internal combustion engine vehicles with electric vehicles (EVs), the automotive industry isn’t offsetting these gains through a significant ramp-up in the toxic emissions derived from smelting in the EV battery supply chain.
“We are excited to take on our mission to build long-term value for our shareholders in the public markets by delivering on our milestones as we plan to bring our bellwether Kabanga Project to commercialization, and as we plan to deploy our Hydromet Technology to unlock the value of other stranded assets and decarbonize the secondary supply chain.”
GoGreen CEO John Dowd said: “On behalf of the entire GoGreen team, we congratulate Lifezone Metals on achieving this tremendous milestone. We believe Lifezone Metals’ unique winning value proposition is underpinned by an unfolding generational push towards decarbonisation – and we believe this foundation is strengthened on its new public platform.
“We believe the company’s Hydromet Technology is a game changer in unlocking value from stranded assets in a cleaner and more responsible way. The Company’s high-quality, low-cost nickel sulphide Kabanga Project in Tanzania will showcase the value of this technology, and positions the Company well to be an early provider of critical cleaner metals for automotive OEMs as they progress along their electrification journeys.”
As the demand for electric vehicles (EVs) continues to surge, there is a pressing need to expand the metals supply chain, particularly for nickel, which is projected to account for up to 80% of the active materials in lithium-ion batteries. Meeting this demand will require significant growth and development in the metals sector. Simultaneously, automakers are increasingly prioritising the decarbonisation of their supply chains in response to consumer demand and regulatory mandates.
Lifezone Metals’ primary asset, the Kabanga Project located in North-West Tanzania, is considered to be one of the largest and highest-quality undeveloped nickel sulphide deposits globally. Notably, industry estimates position the project in the first quartile in terms of both cost and carbon curves. These characteristics are made possible by the implementation of the Company’s proprietary Hydromet processing technology, which offers a more environmentally friendly and cost-effective alternative to traditional smelting methods.
With the utilisation of the Hydromet Technology at the Kabanga Project, carbon dioxide emissions can be reduced by up to 73% compared to traditional smelting methods. Moreover, the process is sulphur dioxide-free.