Specialised mining investment company Lion Selection Group (ASX:LSX) reports it will invest $1 million at $0.10 per share in Australian gold explorer Plutonic as part of a $1.5 million fund raising by Plutonic.
Lion’s investment in Plutonic (alongside up to a potential further $500,000 of investment from other investors) will fund field work to collect the first systematic geochemical and geophysical data over the targets at Champion, as well as similar work at Georgetown.
Under the investment deal, Lion is set to become a significant shareholder of Plutonic with the opportunity to earn up to 40% interest in the company.
It is also reported that subsequent to the investment, Lion executive Hedley Widdup is expected to be appointed to the board of Plutonic, which is currently composed of founder and Managing Director Kris Butera and Non-Executive Directors Jon Hronsky and Amanda Buckingham.
The company also notes that its investment in Plutonic will fund field work to collect the first systematic geochemical and geophysical data over targets hosted within Plutonic’s 2 early stage Champion and Georgetown gold (Au) exploration projects in the Northern Territory.
These ‘very significant’ targets offer the potential for the discovery of new gold districts.
In addition, the company reports that Plutonic contains immense district scale discovery potential with a first-class team and has been obtained at a very attractive valuation.
Plutonic’s Champion Gold Project sits within the continental scale G3 structural corridor, which is host to other gold systems such as Tanami, however has undergone no exploration or testing for gold. The project is also sat within a rift zone that was activated during the accretion and deformation of Eastern Australia and has returned gold anomalism up to 0.59g/t Au from rock chips collected at surface.
Meanwhile, Plutonic’s Georgetown Gold Project represents an ‘extremely’ large intrusion related Au target that is located at the intersection of major, crustal-scale structures.
Lion Selection Group is a listed, specialised mining investment company that is providing a patient, portfolio oriented approach to investing in the high growth early stage mining development space in which specialist knowledge is essential. The company was founded in 1917 to invest in the extremely broad but poorly researched sub-sector of mining, junior resources companies.
The company boasts over 20 years and comprehensive experience in mining and finance and has become a focal point for mining investment opportunities across all global exchanges and many unlisted companies.
Images: Lion Selection Group Ltd & iStock
