Lion One Metals Limited, owners of Tuvatu Gold Project in Sabeto, has signed an agreement with two co-lead underwriters to raise FJ$31.95 million for mineral exploration and development.

The co-lead underwriters – Haywood Securities Inc. and Echelon Wealth Partners Inc – have agreed to underwrite a private placement based on issuing 11,765,000 units of the company at a price of FJ$2.70 a unit for a total gross proceeds of FJ$32,056,410.88.

Managing director Stephen Mann said the fundraising was fully underwritten to enable the company to commence development and production at Tuvatu.

Lion One Metals managing director Stephen Mann.

Tuvatu is across the hills from the Vatukoula Gold Mine, the country’s biggest and most suucessful mine.

Exploration at Tuvatu was first begun by Emperor Gold Mines, the original operators of Vatukoula.

Raising capital

Mr Mann said each unit would consist of one common share in Lion One and one-half of one common share purchase warrant.

“If these warrants are converted to shares, a further C$13.8 million (FJ$21.99 million) will be added to the Lion One treasury.

“The net proceeds from the sale of the units will be used for exploration and development of the company’s Tuvatu Gold Project, as well as working capital and general corporate purposes.”

Mr Mann said the offering was expected to close on or about Tuesday, August 11, 2020, subject to certain conditions.

Conditions

The conditions include receipt of all necessary approvals including the approval of the Toronto Stock Exchange Venture Exchange, and the applicable securities regulatory authorities.

“Thee underwriters will receive a cash commission of 6.0 per cent of the gross proceeds of the offering, and that number of non-transferable compensation options as is equal to 6.0 per cent of the aggregate number of units sold under the offering,” Mr Mann said.

“Each compensation option is exercisable into one common share of the company at the issue price for a period of 24 months from the closing date of the offering.”

Best results

Mr Mann said a recent diamond drill revealed in Tuvatu some of the best gold in drill core results the world over.

The results included the spectacular:

• 2.0 metres @ 35.28 g/t gold from 558.0 metres downhole,
• 12.7 metres @ 46.14 g/t gold from 571.7metres downhole.

“We have three diamond drill rigs running.

“We purchased a new diamond drill rig which should be arriving at Lautoka tomorrow.

“We have also bought two new drill rod carriers and a large amount of other drilling equipment which are already operational on site.”

Feedback: charles.chambers@fijisun.com.fj