Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe

News Update


US$40 Million Financing Announced for Fiji Gold Project

Share on Stocktwits


Vancouver-based miner collaborates with partners to advance mine development and the gold processing plant.

Lion One Tuvatu Project Map

Lion One Metals Limited (LIO:TSX.V; LOMLF:OTCQX) recently announced it has signed an indicative term sheet with Sinosteel Equipment & Engineering Co., Ltd. and Baiyin International Investment Ltd. It combines an EPC (engineering, procurement and construction) and a gold doré off-take financing facility for US$40 million. The funding is going to be used for the development and construction of a processing plant for the company's wholly owned and fully permitted Tuvatu Gold Project located in Fiji.

"We are pleased to cooperate with Baiyin and Sinosteel for the long-term financing, which will provide low-cost capital and maximum flexibility in the development of Fiji's next high grade gold project at Tuvatu," said Walter H. Berukoff, Chairman and CEO of Lion One.

Baiyin will function as the doré off-taker, and Sinosteel the project EPC contractor. Board approvals and final documentation will be completed before closing of the facility, which is expected Q3 of 2018.

Some of the facility details are an annual interest rate of 7.5% for a 5-year term and a 2.25% Net Smelter Return (NSR) on the first 350,000 ounces of gold produced. Principal holiday and capitalized interest for the earlier of two years from first draw or three months after achieving commercial production are included as well.

The principal of the facility can be increased by an additional $10 million at the same terms, per mutual agreement. The right to obtain a new facility of up to $10 million is another option available to Lion One, as long as it is not secured against the security under the facility.

Lion One Metals is based in Vancouver, British Columbia. The company is focused on advancing to production at its 100%-owned and fully-permitted Tuvatu Gold Project located in the Republic of Fiji.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

1) Jake Richardson compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. He or members of his household own shares of the following companies mentioned in this article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: Lion One Metals. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Lion One. Please click here for more information.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Want to read more about Gold investment ideas?
Get Our Streetwise Reports Resources Report Newsletter Free and be the first to know!

A valid email address is required to subscribe