Lion One Secures US$37 Million Financing Facility from Nebari
2023年1月20日 - 10:00AM
JCN Newswire
Lion One Metals Limited (TSXV: LIO) (OTCQX: LOMLF) (ASX: LLO)
("Lion One" or the "Company") is pleased to announce that it has
entered into a facility agreement with Nebari Gold Fund 1, LP,
Nebari Natural Resources Credit Fund I, LP and Nebari Natural
Resources Credit Fund II, LP (each as Lender and collectively,
"Nebari"), with Nebari Collateral Agent, LLC as collateral agent
and certain Lion One subsidiaries as guarantors, for a Financing
Facility of up to US$37M (the "Financing Facility"). Proceeds from
the Financing Facility will accelerate project construction and
development at the Company's 100% owned and fully permitted
high-grade Tuvatu Alkaline Gold Project in Fiji. Lion One expects
first production to be achieved by December 2023.
Financing Facility (All figures in USD): The Financing Facility
consists of a US$35 million senior secured first lien term loan
(the "Loan Facility") and a US$2 million (CAD$2.7 million) equity
investment ("the Equity Investment") in common shares of Lion
One.
Loan Facility: The total amount of the Loan Facility will be funded
in up to three tranches, with US$23M to be funded at Closing
(Tranche 1), and an additional US$12M available at Lion One's
option in up to two further tranches (Tranches 2 and 3) within 18
months of closing. Interest on Tranche 1 is 8% (plus three-month
SOFR), and amortization is on the Maturity Date 42 months from the
Closing Date, with no closing fees payable. Tranches 2 and 3
funding is subsequent to an 8% original issue discount and interest
is 10% plus SOFR, with progressive amortization over 42 months from
the Tranche 2 funding date, with closing fees equal to 2% of the
amounts funded.
Warrants: On the Closing Date, the Lender will be issued 15,333,087
non-transferable purchase warrants in the Company (the "Warrants"),
with each Warrant exercisable into common shares of Lion One at a
price of CAD$1.49 for a period of 48 months from issuance. The
warrants will be subject to an accelerator provision whereby the
Borrower may accelerate the expiry date of up to 25% of the initial
warrants in the event that the volume weighted average trading
price of the common shares of the Company exceeds 100% over the
strike price for a period of twenty consecutive days. Lion One has
the option to accelerate the expiry of further 25% portions of the
warrants at four-month intervals, up to a maximum of 75% of the
warrants issued.
Royalty Payment: Following the first month in which the Tuvatu
Project produces at least 2,000 ounces of gold, the Company shall
pay to the Lender a royalty equal to 0.5% of the Net Smelter
Returns on the first 400,000 ounces (equivalent to 2,000 ounces) of
gold produced and sold from the Tuvatu Project.
Equity Investment: Concurrently with the Loan Facility, Nebari has
entered into a subscription agreement to purchase 3,125,348 common
shares of Lion One at a price of CAD$0.86 per share, representing
an aggregate equity investment of US$2M (CAD$2.7M).
The Company's right to drawdown Tranche 1 of the Loan Facility is
subject to satisfaction of customary conditions precedent,
including approval of the TSX Venture Exchange ("TSX-V"), though
these conditions precedent are expected to be satisfied in short
order. Issuance of the Warrants and completion of the placement is
also subject to TSX-V approval.
Lion One Chairman and CEO Walter Berukoff commented, "We are
extremely pleased to have secured Nebari as a financial partner and
major shareholder in the development and future success of Tuvatu.
They are a vastly experienced group, are aligned with our key
values and stakeholders, and have delivered a creative solution to
bring the Tuvatu project to completion and enhance shareholder
value tremendously."
Andre Krol, Managing Partner with Nebari, commented: "We are
extremely excited to partner with Lion One as a shareholder and
lender as they complete construction of the Tuvatu Gold Project.
The experience, professionalism and community engagement of their
Fijian team was impressive and we look forward to first gold
production later this year and further exploration success."
About Tuvatu
The Tuvatu Alkaline Gold Project is located on the island of Viti
Levu in Fiji. The January 2018 mineral resource for Tuvatu as
disclosed in the technical report "Technical Report and Preliminary
Economic Assessment for the Tuvatu Gold Project, Republic of Fiji",
dated September 25, 2020, and prepared by Mining Associates Pty Ltd
of Brisbane Qld, comprises 1,007,000 tonnes indicated at 8.50 g/t
Au (274,600 oz. Au) and 1,325,000 tonnes inferred at 9.0 g/t Au
(384,000 oz. Au) at a cut-off grade of 3.0 g/t Au. The technical
report is available on the Lion One website at
www.liononemetals.com and on the SEDAR website at
www.sedar.com.
About Nebari
Nebari is a US-based investment manager specializing in privately
offered pooled investment vehicles including Nebari Gold Fund 1,
LP, Nebari Natural Resources Credit Fund I, LP and Nebari Natural
Resources Credit Fund II, LP which are funding the Financing
Facility to Lion One. The Nebari leadership team has deep
experience with leading global mining companies and financial
institutions and is known for partnering with motivated and capable
management teams focused on achieving clear plan targets.
About Lion One Metals Limited
Lion One's flagship asset is 100% owned, fully permitted high grade
Tuvatu Alkaline Gold Project, located on the island of Viti Levu in
Fiji. Lion One envisions a low-cost high-grade underground gold
mining operation at Tuvatu coupled with exciting exploration upside
inside its tenements covering the entire Navilawa Caldera, an
underexplored yet highly prospective 7km diameter alkaline gold
system. Lion One's CEO Walter Berukoff leads an experienced team of
explorers and mine builders and has owned or operated over 20 mines
in 7 countries. As the founder and former CEO of Miramar Mines,
Northern Orion, and La Mancha Resources, Walter is credited with
building over $3 billion of value for shareholders.
On behalf of the Board of Directors of Lion One
Metals Limited
"Walter Berukoff", Chairman and CEO
Contact Investor Relations
Toll Free (North America) Tel: 1-855-805-1250
Email: info@liononemetals.com
Website: www.liononemetals.com
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