LIO: Strategic Arete Investment; Accelerating Growth
What you need to know:• Lion One has announced key updates in recent months, centred around a strategic investment by Arete Capital.
• The Arete transaction results in a new CEO and mine operator, well-positioning the Company to accelerate growth.
• Operational optimizations are underway and have displayed early success.
Lion One Metals Ltd. (LIO:TSXV, LOMLF:OTC) has announced a series of key updates in recent months, following an announced strategic investment by Arete Capital on December 30th. Campbell Olsen has taken over as CEO, and the experienced Arete team will manage Tuvatu, delivering early success in optimizing the mine, with plans in place to put LIO on a positive and accelerated trajectory. We are maintaining our BUY rating and target price of $0.60/share on Lion One Metals.
On December 30th, LIO announced a strategic $15.1M non-brokered private placement with Arete Capital Advisory to issue 44.3M units at $0.34, each with a share and a three-year $0.39 warrant, which represented a 16.4% premium and gives Arete a 9.9% pro forma stake. As part of the partnership, Arete will gain board nomination and anti-dilution rights. Arete (a specialist mining investment syndicate) will also provide management services and become the operator of the Tuvatu mine for an initial 5-year term. The transaction is awaiting TSXV approval, which is anticipated in the near-term.
Immediately following the announcement, former CEO Ian Berzins departed the Company on December 31st. Campbell Olsen has been appointed, bringing expertise in mining investment and operations management, having managed investments in Australia, Europe, and Latin America, across all aspects of exploration and mining operations. Mr. Olsen has ambitious plans for Tuvatu, supported by the experienced Arete team and has indicated his commitment to honestly and systematically address the challenges at Tuvatu. In our view, LIO is now well-positioned to execute, backed by a well-funded team with extensive expertise in UG mining.
Lion One Metals is in the business of mineral exploration and development and is focused on the acquisition, exploration and development of mineral resources in Fiji, Australia and Argentina. Co. is in the process of exploring and evaluating its resource properties and has not yet determined whether the properties contain mineral reserves that are economically recoverable. The recoverability of the amounts shown for exploration and evaluation assets are dependent upon the existence of economically recoverable reserves, the ability of Co. to obtain necessary financing to complete the development of those reserves and upon future profitable production.
Atrium Research provides institutional quality issuer paid research on North American public equities using deep fundamental analysis. Our research reports are disseminated through Bloomberg, FactSet, Capital IQ, Reuters and many more, as well as through our social media and email distribution lists.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.