Lion One Metals (TSX-V:LIO) has closed the first tranche of its non-brokered private placement, raising C$15.3 million ($15.64 million) in gross proceeds through convertible debenture units and equity units.
The company issued 12,500 convertible debenture units at C$1,000 each for gross proceeds of C$12.5 million.
Each debenture unit comprises a 10% subordinated secured convertible debenture with a four-year maturity, convertible at C$0.13 per share, plus 7,692.3 share purchase warrants exercisable at C$0.175 per share for four years.
Lion One also completed a concurrent private placement of 21.4 million units at C$0.13 per unit. Each unit consists of one common share and one common share purchase warrant, which is exercisable at C$0.175 per share for three years.
The company intends to use net proceeds to satisfy upcoming payment obligations under its senior secured loan facility with Nebari funds and cure its ongoing working capital covenant default under the facility.
Additional proceeds will fund general corporate and working capital purposes.
Lion One expects to close the second tranche by 10 July for the remaining C$1.5 million of debenture units initially announced.
Certain subscribers include directors and management, constituting a related party transaction under multilateral instrument 61-101. The transactions are exempt from formal valuation and minority shareholder approval requirements.
The securities are subject to a statutory hold period expiring four months and one day after issuance.
The company notes completion remains subject to final TSX Venture Exchange acceptance.
Lion One also announced management changes following Ian Berzins’ appointment as President and CEO on 16 June.
Tony Young has resumed his role as CFO and Zamand Shokri has returned as Corporate Controller.
Young and Shokri served as interim CEO and interim CFO, respectively, from 1 May to 16 June during the management transition.
Lion One Metals is a Canadian gold producer focused on the operation and development of its 100%-owned Tuvatu Alkaline Gold Project in Fiji.
Write to Paula Fabe at Mining.com.au
Images: Lion One Metals
