Canadian resource company Lion One Metals (ASX:LLO) has closed a $27 million bought deal to advance exploration and development at its Tuvatu Alkaline Gold Project in Fiji.
The company reports it has issued 29.5 million company units at $0.92 per unit for aggregate gross proceeds of just over $27 million, pursuant to the terms of an underwriting agreement announced on 5 May 2023 with Eight Capital, Canaccord Genuity, Raymond James, and Roth Canada.
Lion One says each unit consists of a single common share in the capital of the company and half of a common share purchase warrant. Each warrant is exercisable to acquire a common share in Lion One at a price of CAD$1.25 for a period of 30 months from the closing date of the offer.
The company reports it has applied to list the warrants on the Toronto Stock Venture Exchange (TSX-V), which has been conditionally approved subject to the receipt of final documentation. Lion One expects the warrants will commence within 3 days following closing.
Lion One reports it intends to use the net proceeds to advance the exploration and development activities at Tuvatu
Additionally, Lion One reports it intends to use the net proceeds to advance the exploration and development activities at Tuvatu by acquiring additional mining and process plant equipment and infrastructure, as well as advancing mine development, including mining initial ‘high-grade’ material.
The funds will also be used to commission the process plant equipment, construct a tailings dam storage facility, and continue infill and deep feeder drilling programs, along with working and general corporate capital purposes.
Lion One is a Canadian resource company focused on exploring its flagship Tuvatu Alkaline Gold Project on the island of Viti Levu in Fiji. The company says Tuvatu is located 35km southeast of the Vatukoula gold mine, which is one of the oldest and most prolific gold mines in the South Pacific.
Images: Lion One Metals Ltd
