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Lion One Metals Ltd V.LIO

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

Lion One Metals Limited is a Canadian gold producer. It is in the business of mineral exploration and evaluation and is focused on the development of mineral resources in Fiji. The Company is the owner and operator of the Tuvatu Gold Mine located on the island of Viti Levu in the Fiji Islands. The Tuvatu Gold Project has been fully permitted for development, construction, and mining by the Government of Fiji with the grant of a Special Mining Lease (SML 62). The Tuvatu project comprises the high-grade Tuvatu Alkaline Gold Deposit, the Underground Gold Mine, the Pilot Plant, and the Assay Lab. The Property comprises four special prospecting licenses (SPL 62), with a total area of 20,170.5 hectares. It also has an extensive exploration license covering the entire Navilawa Caldera, which is host to multiple mineralized zones and highly prospective exploration targets. It holds four exploration licenses for the Tuvatu properties as granted by the mineral resources department.


TSXV:LIO - Post by User

Bullboard Posts
Post by ctoivoon Feb 04, 2016 11:35pm
212 Views
Post# 24527007

Net Present Value

Net Present Value     LION's NPV after tax valuation according to their website is C$86 million at USD $1,100, so it would be somewhat more now--say C$94 million, give or take. The market cap is now $23.5 million so there is certainly room for the share price to move up considerably.

    The $64,000 question, of course, and whats kept many folks on the sidelines is dilution of shares with the coming financing.  Its possible they could pull  off the relatively low capital expenditures without dilution. (Perhaps pay back to the lenders in ounces of gold with a guarantee of USD$1,250 minimum would do it, I think) .

     More likely it will be a combination loan and shares. Since dilution hits Berukoff in the pocket, I'd be surprised if the share count went from the present 63 million to as high as 100 million, but even if they did, the value of present money invested in shares should still be worth twice or more what it is now according to its after tax NPV.

    This is just talking about the 'starter' mine, of course, and obviously  saying nothing about the tremendous upside to exploration of this high grade, gold laden,old caldera. (That has exploration costs alreadybuilt into the AISC.)
Bullboard Posts