Giyani Metals (TSXV:EMM) Research Update

Highlights:

• Arrowhead is updating coverage on Giyani Metals with a fair-value bracket of CAD 2.3 to CAD 3.5 (share price on September 20, 2022: CAD 0.28) based on the Net Present Value method
• Giyani Metals continued its Reverse Circulation drilling program at the K.Hill extension. In addition to 54 holes that had already been drilled, the company planned an additional 19 Reverse Circulation holes for this section. Out of these 19 Reverse Circulation holes, 11 have already been drilled up to 730 meters, 2 are in progress, and the remaining 6 will be drilled in Q3 2022. The drill holes are expected to be assayed in H2 2022 by SRK Consulting for an updated mineral resource estimate for the K. Hill Project
• The company expects the feasibility study for its K.Hill project, which started in 2019, to be completed and released by the end of Q3 2022, which is an essential step toward its aim of becoming a leading independent producer of high-purity manganese for the electric vehicle battery market.
• The company signed the construction contract for the demonstration plant with Met63, a specialist construction and engineering company, to construct and commission the demo plant by mid-2023, with a view to initiate shipping of product samples to clients in H2 2023
• The company plans to complete Environmental and Social Impact Assessment Studies to gain environmental authorization as a part of the mining license application. For that purpose, the company has appointed Ms. Nicola Spooner, a highly experienced environmental and social (E&S) advisory professional, with 30 years of experience in E&S advisory services to the natural resources and clean energy sectors
• The company appointed HCF International Advisers Limited, a leading independent corporate finance advisory company, as a financial adviser to assess the company’s funding options.
• The company has also appointed Renmark Financial Communications to provide corporate communication and investor relations services
• In H1 2022, out of CAD 28.1 mn which the company raised from 3 equity financings in FY 2020 and FY 2021, the company had CAD 19.4 mn in cash and cash equivalents which will enable the company to adequately cover its short-term work programs