Lion Selection Group (ASX:LSX) specialises in junior resource companies. The chief investment officer of the firm is fund manager Hedley Widdup.
Back in May, Lion participated in the $26.6 million equity raise for gold developer Sunshine Metals (ASX:SHN). Sunshine used the capital to help fund the acquisition of the Mt Moss processing facility in North Queensland. It also includes mining leases, exploration permits, and a tailings facility and camp, which are now operational.
Last week, Sunshine announced that the deal has now been completed. SHN has paid $8 million upfront and has the remaining $10 million payment deferred while the plant is refurbished and a gold circuit installed.
Sunshine will also assume debt to complete all the necessary funding for its projects. This is happening to facilitate gold production in 2027.
In other words, Sunshine is getting very close to being able to monetise its gold resource at the current buoyant gold price and while interest in gold projects is high.
Sunshine Managing Director Dr Damien Keys told the market:
“Last week, Sunshine hosted key government and investor stakeholders at Mt Moss, showcasing the progress of the camp refurbishment and plans to upgrade the processing facility.
“Final site preparations at Sybil are now nearing completion ahead of drilling at Francis Creek, Francis Creek East, and Blue Range.
“Sunshine’s sites are a hive of activity at the moment, and we look forward to updating shareholders on our progress.”
Investing website Livewire Markets recently interviewed Hedley Widdup on the current mining cycle.
He nominated Sunshine Metals as one of his favourite junior gold ideas currently. He told host Patrick Poke, in part, that Sunshine’s Sybil is a tantalising, high-grade area ripe for further exploration. It’s also adjacent to the recent Mt Moss acquisition.
That gives Sunshine a nice strategy of near-term gold production and big exploration upside. He described its growth outlook as “phenomenal”.
You can listen to the full interview here.
Write to Callum Newman at Mining.com.au
Images: Sunshine Metals
