Lion Selection Group (ASX:LSX) has committed to invest $3 million in the recent $6 million placement announced by Saturn Metals (ASX:STN), its largest deployment of funds into a new investment since exiting Indonesia in February this year.
The specialised investment firm’s latest investment follows its participation and $250,000 investment in Sunshine Metals’ (ASX:SHN) $3 million placement that was announced on 21 September 2023 and priced at $0.014 per share.
Lion is assembling a portfolio of Australian-focused strategic materials, precious and base metals companies and sees the likelihood for adding further cornerstone investments to the portfolio at attractive pricing levels as excellent. With $76.1 million cash in its coffers as of 30 September 2023, Lion says it is well funded to invest as opportunities present.
Founder and Director of Lion Selection Group Robin Widdup, who is scheduled to attend the upcoming International Mining and Resources Conference (IMARC) in Sydney at the end of this month, says the Saturn investment fits the firm’s investment criteria for a number of reasons.
“Lion closely watches the mining cycle. We haven’t updated the Lion clock time, but are certain that it is now after midnight, and we are seeing widespread examples of funding pressure which is generating attractively priced opportunities.
Saturn and Sunshine both have established resources and strong management teams with conviction in their projects, and they both fit the pattern of investments Lion likes to make.”
Lion notes as a result of its Saturn investment, the firm will become a substantial shareholder, with an 11.45% interest after the placement ($6 million in total) and a 10.64% interest after a fully subscribed share purchase plan (a further $2 million).
Under Saturn’s placement, 48 million shares will be issued at an offer price of $0.125 per share, representing a 21.9% discount to the closing price of $0.160 on 12 October 2023, and a 15.7% discount to the 10-day volume weighted average price (VWAP) of $0.148.
Saturn reports a SPP will follow the placement to raise an additional $2 million. Shareholders may apply for up to $30,000 worth of new shares issued at the same price as the placement.
Funds are expected to be used to progress a Prefeasibility Study (PFS) at its Apollo Hill Project and to help evaluate scaled-up processing trials.
Saturn Metals Managing Director Ian Bamborough says this placement represents a ‘significant’ step on its journey towards entering its Apollo Hill Project into development.
“Saturn appreciates the support demonstrated by our major existing and new shareholders for the strategy we are executing as we progress the Apollo Hill Project towards development“
“Saturn appreciates the support demonstrated by our major existing and new shareholders for the strategy we are executing as we progress the Apollo Hill Project towards development.
This funding will enable the company to take significant steps along that development pathway with the aim of unlocking the full value potential of the project and our exploration tenure.”
Both Saturn Metals and Sunshine Metals are also scheduled to attend the upcoming IMARC held in Sydney from 31 October to 2 November 2023. Mining.com.au is an official media partner of IMARC, which will showcase 500-plus mining leaders and resource experts throughout 7 concurrent conferences.
Lion Selection Group is a specialised listed investment company assembling a portfolio of Australian-focused strategic materials, precious and base metals junior miners.
Saturn Metals has a ‘large’ established gold resource near the township of Leonora in Western Australia, which is the product of numerous drilling campaigns that represent a ‘substantial’ historic investment in the project over time.
Sunshine Metals holds a base metals-dominated resource in North Queensland within a geological belt that contains numerous similar examples of mineralisation.
Write to Adam Drought at Mining.com.au
Images: Saturn Metals
