This Week
Well lets see how Lion did this week:
https://ibb.co/3NXwHrg
The best performer of the 4 Tier 1 projects.
How about YTD?
https://ibb.co/vmG53dT
Still some catching up to do.
You would think we would hear some drilling news soon - but we have to remember the third rig doesn't get here until the middle of June.
So how is this talk of a small pant processing. I fear - and I hope I'm wrong - we will do a lot of waiting. The first mention of the plant was made in the update video of April 15.
Then the Eight Capital report laid out in detail the looking forward details of the plant estimating production starting in 2022. Well I'd say that's out the window.
Then in the June company presentation it's mentioned again. Well I say Eight Capital is about to learn that when Lion say's they are going to do something - be prepared to do a lot of waiting.
So what's the hold up? It's not as if Lion has not taken a detailed look at such a plant before.
See news release May 9, 2017 : "The Company continues to work alongside its EPC partner Ansteel to complete the design and financing of the Tuvatu Gold Project".
Also on that date: "The Company has contracted Yantai Jinpeng Mining Machinery Co Ltd, based in Shandong Province, PRC, to complete the final detailed engineering design plans for the Tuvatu processing plant, tailings dam, and surface infrastructure. "
And who can forget: June 26, 2017...." has received competing bids for the EPC contract and fabrication of the Tuvatu processing plant and construction of the supporting infrastructure."
OH...then this: Sept 5, 2017:...." Completed evaluation of the Engineering, Procurement, and Construction (EPC) proposals. Contract to be awarded following final negotiations with remaining EPC candidates in China;"
Might as well throw in another one: Sept 15, 2017:.........."alongside final detailed engineering for the Tuvatu processing plant and site infrastructure."
Ok another one: March 5, 2018 :..." Detail engineering continues on the process plant, infrastructure and tailings storage facility".
June 4, 2018:...".Lion One Announces US$40 Million Debt Financing for Construction of the Tuvatu Gold Project in Fiji" and " entered into an indicative term sheet with Sinosteel Equipment & Engineering Co., Ltd"
Oh then Shhhhh.....not another word. But you do see the timeline of such a project.
So how long is it going to take this time? My bet is Wally can't make a decision on financing. He seems to not want to go the debt route and another large PP so soon would be an anchor on shares. Capital Eight mentioned 40 million PP at 1.50ish share price. So say another 26 million shares with warrants...... 52 million shares total. You can see our share count would be really be getting up there. It's so obvious the debt route would be the way to go.
Hey...I have another thought on financing. There's this other guy out there throwing big money at a great number of projects and he's looking for more opportunities.
His name his Eric Sprott. Maybe Lion can approach him? OMG I'm getting tears with laughter on that one......a joke for the people in the know.
So we wait. Maybe Lion will prove me wrong - that would be nice because I do think a pilot plant is the way to go. In fact I'm really hoping I'm wrong.
Meanwhile we wait for drilling results. Good results will have a very good effect on the share price. Keep in mind this is a once in a lifetime Tier 1 project with money to be made. Just not as much as first envisioned because of lack of direction and resolve. They seem to be getting both back which will be good for us - the shareholders.