Lion One Metals Ltd V.LIO

Alternate Symbol(s): V.LIO.W | LOMLF

Metals & Mining Gold

Lion One Metals Limited is a Canada-based exploration company. The Company is engaged in the business of mineral exploration and evaluation and is primarily focused on the acquisition, exploration and evaluation of mineral resources in Fiji. The Company owns 100% of Tuvatu Alkaline Gold Project, which is located approximately 24 kilometers northeast of the town of Nadi on the island of Viti Levu in the Republic of Fiji. The area surrounding the Tuvatu gold deposit and resource area is covered by approximately three-square kilometers of special mining lease (SML 62), with the broader project area covered by approximately 13,613 hectares of special prospecting licenses (SMLs 1283, 1296, 1465 and 1512), covering the balance of the Navilawa caldera. The SML 62 provides rights for the potential development, construction, and operation of mining, processing, and waste management infrastructure at Tuvatu. The Company holds over four exploration licenses (SPLs) for the Tuvatu properties.

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Lion One Metals Ltd

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Post by colorisgreen2on Jun 06, 2018 12:49pm

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REDCLOUDKS

LION ONE METALS LTD.

Debt Financing In-Place; Tuvatu Construction Expected to Ramp-Up

Impact: Very Positive

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Lion One has entered into an indicative term sheet with Sinosteel Equipment & Engineering Co. Ltd. of China and Baiyin International Investment Ltd to secure debt Financing for construction of its high-grade Tuvatu Gold Project in Fiji.

Favourable terms includes an EPC (Sinosteel) and gold dor off-take (Baiyin) financing facility totalling US$40M with an option to increase by $10M, which includes a term of 5 years at 7.5% and a 2.25% NSR on the first 350koz Au produced
PEA (2015) outlines initial capital investment (excluding working capital) for Tuvatu at US$48.6M
With exploitation permits in-hand and C$21.6M (US$16.6M) in cash, the company is well-positioned to continue on the path to construction and production

Lion One currently trades at C$78/oz, a modest premium to peers (C$53/oz), however, after our site visit we view that this premium does not properly account for this project’s permitted status, essentially financed nature or the significant exploration upside that we see.