Lion One Metals Ltd V.LIO

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

Metals & Mining Gold

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.

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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.