Lion Copper closes US$2.7 million debenture financing
Lion Copper and Gold Corp. [LEO-CSE, LCGMF-OTCQB] has raised US$2.7 million from a non-brokered private placement of secured convertible debentures.
Proceeds are earmarked for the purchase of lands and associated mineral rights related to the company’s projects in Yerington, Nevada, where back in early August, 2025, Lion announced the results of a pre-feasibility study for its wholly owned Yerington Copper Project. Lion Copper is advancing the Yerington project through an option to earn-in agreement with Nuton LLC, a Rio Tinto [RIO-NYSE] copper recovery venture.
Repayment of the debentures will be secured against the lands and mineral rights to be purchased with the proceeds of the offering.
The debentures bear interest at a rate of 12% annually and will mature on a date that is 12 months from the issue date. The principal amount of the debentures may be converted into common shares of the company at US$0.0965 per share until November 6, 2026. Interest may be settled in shares priced a the time of repayment or conversion of the note at the option of the company.
Tony Alford, a director of the company, acquired debentures in the principal amount of US$1.4 million and 14.5 million warrants for the total purchase price of US$1.4 million pursuant to the debenture financing. Following completion of the debenture financing Alford owns and/or has control over 74.2 million warrants and 29.9 million stock options, and debentures of principal amount US$1.4 million, which if exercised would leave him with 43% of the issued and outstanding shares of the company.
The pre-feasibility study for the Yerington project envisions a scalable open pit heap leach operation with average annual production of 120 million pounds of refined copper cathode over a 12-year mine life with a peak of 151 million pounds in years five to seven.
Initial capital is estimated at $724 million, including mine development, heap leach pads, SX/EW plant, acid plant and related infrastructure. The all in sustaining cost is estimated at US$2.67 per pound of copper.
The study is based on proven and probable reserves of 506.5 million tons at 0.21% copper, containing 2.14 billion pounds of copper. The heap leach operation with solvent extraction electrowinning (SX/EW) will be enhanced by the application of Rio Tinto Plc.’s Nuton technologies for recovering cathode copper from sulfide materials, negating the need for concentrator, tailings impoundment and smelter operations. The Yerington Copper project integrates the Yerington and MacArthur deposits, located in Nevada’s Yerington Copper District, a historic mining region with infrastructure that includes rail, power and U.S. Highway 95A. The project plans to create approximately 400 direct jobs during construction and up to 250 permanent jobs during operations.
Benefits of the project include utilizing disturbed land for mine infrastructure, zero discharge of water from copper processing operations, lower carbon intensity, and efficiently delivering copper cathode directly to U.S. supply chains.
Lion Copper shares were unchanged Friday at 14.5 cents and trade in a 52-week range of 22 cents and $0.05.