Lion One Metals completes US $25 million financing for Fiji mine project
Lion One Metals Ltd. [LIO-TSXV; LOMLF-OTCQX; LLO-ASX] has completed its previously announced debt and equity financing transaction and has received total proceeds of US$25-million from the financing of the US$23-million first tranche of its previously announced US$37-million financing facility provided by Nebari Gold Fund 1 LP, Nebari Natural Resources Credit Fund I LP and Nebari Natural Resources Credit Fund II LP and Nebari’s completion of a US$2-million equity private placement in the company, for the development of Lion One’s 100%-owned Tuvatu alkaline gold project in Fiji.
In addition to Tranche 1, an additional US$12 million is available under the Financing Facility at Lion One’s option in up to two further tranches which may be drawn on by Lion One within 18 months of the date of the Financing Facility. The Equity Investment involved Nebari’s subscription for 3,125,348 common shares of Lion One priced at CAD$0.86 per Common Share.
In connection with the funding of Tranche 1, 15,333,087 warrants have been issued to Nebari with each Warrant exercisable into one common share at a price of CAD$1.49 for 42 months. The warrants are non-transferable and will be subject to an accelerator provision whereby the borrower may accelerate the expiry date of up to 25% of the warrants in the event that the volume weighted average trading price of the common shares exceeds 100% over the strike price for 20 consecutive trading days on the TSX-V. Lion One has the option to accelerate the expiry of further 25% portions of the warrants at four-month intervals, up to a maximum of 75% of the warrants.
The common shares subscribed for pursuant to the equity investment and the warrants will be subject to a hold period expiring May 11, 2023.
The Tuvatu Alkaline Gold Project is located on the island of Viti Levu in Fiji. The January 2018 mineral resource for Tuvatu comprises 1,007,000 tonnes indicated at 8.50 g/t gold (274,600 oz. Au) and 1,325,000 tonnes inferred at 9.0 g/t gold (384,000 oz. Au) at a cut-off grade of 3.0 g/t gold.
About NebariNebari is a US-based investment manager specializing in privately offered pooled investment vehicles including Nebari Gold Fund 1, LP, Nebari Natural Resources Credit Fund I, LP and Nebari Natural Resources Credit Fund II, LP which are funding the Financing Facility to Lion One.
Lion One’s flagship asset is 100%-owned, fully permitted high-grade Tuvatu Alkaline Gold Project. Lion One envisions a low-cost high-grade underground gold mining operation at Tuvatu coupled with exciting exploration upside inside its tenements covering the entire Navilawa Caldera, an underexplored yet highly prospective 7km diameter alkaline gold system.