The company has drawn down a total of US$31 million (FJ$69.09m) of US$35 million (FJ$78m) available in the financing facility.
Lion Ones’ Tuvatu gold mine gets down to gold production this year. Photo: Leon Lord
More changes are in store for the country’s second operating gold manufacturer as it gets down its first year of production.
Lion One Metals is an emerging Canadian gold producer based in North Vancouver BC, with new operations established in late 2023 at Tuvatu Alkaline Gold project in Fiji.
The project comprises the high-grade Tuvatu gold deposit, gold mine, pilot plant, and assay lab, with an extensive exploration license area hosting multiple mineralised zones in the surrounding Navilawa Caldera.
Lion One Metals Limited has drawn down a further US$8 million (FJ$17.83m) of its Senior Secured Financing Facility, through Nebari Gold Fund 1, LP, Nebari Natural Resources Credit Fund I, LP, and Nebari Natural Resources Credit Fund II, LP (collectively, “Nebari”).
Proceeds from the financing facility facilitated the completion of construction and recent commissioning of the company’s mine near Nadi.
Lion One’s Tuvatu chief operations officer Patrick Hickey (3rd from left ) flanked by environment officer Sereana Vatucicila, and miners Pauliani Kulavere (far right), and AkuilaTawakedrau (2nd from left), at the mine in Sabeto . Photo: Leon Lord
The company has drawn down a total of US$31 million (FJ$69.09m) of US$35 million (FJ$78m) available in the financing facility.
Lion One amended certain reporting covenants under the facility agreement and agreed to re-price the 15,333,087 warrants issued at a price of CAD $1.49 (FJ$2.49), to CAD $1.15 (FJ$1.92), with the expiry date extended from August 9, 2026 to February 9, 2027.
Amendments to the warrant terms are subject to the approval of the TSX Venture Exchange.
Interest on the first US$23 million (FJ$51.26m) drawn from the facility was 8 per cent (plus three-month secured overnight financing rate (SOFR)), and amortisation is on the Maturity Date 42 months from the original closing date, with no closing fees payable.
The second and third drawn down funding is subject to an 8 per cent original issue discount and interest is 10 per cent plus SOFR, with progressive amortisation over 42 months from the funding date, with closing fees equal to 2 per cent of the amounts funded.
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