Tag Archives: Lion One Metals

Lion One Announces US$40 Million Debt Financing for Construction of the Tuvatu Gold Project in Fiji

Acting Prime Minister and Minister for Lands and Mineral Resources Faiyaz Koya (centre) officiates at the groundbreaking ceremony of Tuvatu Gold Mine processing plant civil works. Picture: REINAL CHAND

Lion One Metals | Geology for Investors | June 4, 2018

Lion One Metals Limitedis pleased to announce it has entered into an indicative term sheet with Sinosteel Equipment & Engineering Co., Ltd. of China and Baiyin International Investment Ltd. The term sheet incorporates an EPC and gold doré off-take financing facility totalling US$40 million for mine development and construction of the processing plant for the Company’s 100% owned and fully permitted Tuvatu Gold Project, located near the Nadi International Airport in the Republic of Fiji.

Lion One intends to engage Sinosteel as the project EPC Contractor and Baiyin as the doré off-taker, and be provided with a US$40 million Facility. Closing of the Facility is subject to satisfactory due diligence, board approvals, and final documentation, with closing expected to close in the third quarter of 2018.

Highlights of the Facility include the following key terms:

  • Term of 5 years at annual interest rate of 7.5%
  • Principal holiday and capitalized interest for the earlier of 2 years from first draw, or 3 months after achieving commercial production, followed by 12 equal quarterly repayments
  • Net Smelter Return (NSR) royalty of 2.25% on the first 350,000 ounces of gold produced

Lion One will have the option, subject to mutual agreement, of increasing the principal of the Facility by an additional $10 million with the same interest rate, repayment schedule, security, and pro-rata royalty as the Facility. Lion One will also have the right to obtain a new facility of up to $10 million freely, provided it is not secured against the security under the Facility.

Walter H. Berukoff, Chairman and CEO of Lion One commented “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.”

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Fiji: New mill, processing site to create 200 local jobs

Acting Prime Minister and Minister for Lands and Mineral Resources Faiyaz Koya (centre) officiates at the groundbreaking ceremony of Tuvatu Gold Mine processing plant civil works in Sabeto, Nadi last Friday. Picture: REINAL CHAND

Kalesi Mele | The Fiji Times | November 20, 2017

LION One Ltd Mines will soon have a new mill and processing site after a groundbreaking ceremony at Tuvatu, Sabeto in Nadi.

The new development is set to create employment for about 200 locals.

The company had set up in Fiji eight years ago and was only issued a special mining lease in January 2016.

Acting Prime Minister Faiyaz Koya, who officiated at the event on Friday, said the development was set to have direct contributions to the economy.

“It is evident how the company has forged ahead in meeting its exploration targets and is now advancing into the next stage of finalising its deposits for mine production,” he said.

“This is a positive sign as it portrays the commitment of Tuvatu Gold Mine to produce to its full capacity by the second quarter of 2019.

“This expansion work will contribute to the economy directly and indirectly in many forms, such as the employment of the local community.”

Lion One Metals chief executive officer Walter Berukoff said ore body of the rocks found at the mine was one of the best and believed to be in the top 10 in the world.

“Our goal is also to provide job opportunities for locals for generations to come,” he said.

“We made the promise to build an environmentally sustainable mine and our mandate has not changed. That was the promise I made to Prime Minister Voreqe Bainimarama years ago and it is a promise we will keep.”

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Lion One Will Be The Next Gold Mine In Fiji

Fabio Herrero | Seeking Alpha | April 27 2017

Lion One is exploring for gold in the Fiji, and the main project is in the financing phase.

Summary

  • The Tuvatu gold project sports an after tax $86.5m NPV5 with an IRR of 52.3% and a payback of 1.5 years. Moreover there is high-grade exploration potential nearby..
  • Management is experienced and is gearing up for construction by adding new capable mine builders.
  • Project construction will be easily financed and the company has cash on hand to pursue both development and exploration.

Lion One Metals Ltd. owns 100% of the fully permitted Tuvatu Gold Project on the island of Viti Levu in the Republic of Fiji. This project is currently in development and the company is in the financing stage. I am convinced that Lion One is undervalued and could rise substantially in a flat or rising gold environment.

This article will be structured as follows: first, a detailed analysis of the Tuvatu Gold Projec, before mentioning current exploration efforts and the other assets in the company portfolio. This is will represent the core part of our valuation. In the second part of the article we will have specific chapters dedicated to management, capital structure and Fiji as a mining jurisdiction in order to help us get the big picture surrounding the company. Finally, a valuation chapter will provide an out-of-the-envelope valuation of Lion One Metals, before the conclusion that will consist of a buy recommendation and a short cautionary statement about the risk of investing in small caps -always a good exercise before deciding to trade.

The Tuvatu Gold Project

Tuvatu Gold Project is located on Viti Levu, the main island of the Republic of Fiji, and is only 17 km from the Nadi International Airport.

The project is in a caldera setting, and it is located along the ring of fire, that stretches from Japan to The Philippines to Fiji. It is along trend with the caldera-situated Vatukoula gold mine, which has produced 7m oz Au in the last 82 years and is owned by Vatukoula Gold Mines. Incidentally, this is also one of the ten largest epithermal gold systems ever discovered according to a 2012 report by WH Ireland Research.

To read the rest of this article: https://seekingalpha.com/article/4065987-lion-one-will-next-gold-mine-fiji

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Fiji: Chinese to finance Tuvatu gold mine

china

China’s largest iron ore miner, Ansteel Group, to finance the Tuvatu gold mine

Lion One Announces MOU for EPC Contract and Vendor Financing with Ansteel-CapitalAsia for Construction of the Tuvatu Gold Project

Lion One Metals | Junior Mining Network | 24 August 2016

Lion One Metals Limited is pleased to announce the signing of a non-binding Memorandum of Understanding (MOU) for an EPC Contract and Vendor Financing Agreement with Ansteel-CapitalAsia Global Engineering Inc. (the EPC Contractor, or Ansteel) covering a comprehensive Engineering, Procurement, Construction, and financing package for the development of the Company’s 100% owned and fully permitted Tuvatu Gold Project in Fiji.

The scope of the EPC contract covers the design, construction, start-up testing, and commissioning of the Tuvatu gold processing plant. Ansteel will also furnish all materials, equipment, machinery, tools and consumables, provide quality control and administration, and will develop the Project Health and Safety Plan at the Project Site. In addition to the EPC Contract, Ansteel will also provide vendor financing for up to 80% of the anticipated value of the EPC Contract in the form of a Deferred Payment Amount of approximately US$39,000,000-$44,000,000. The Company will fund a minimum of US$10,000,000 or approximately 20% of the anticipated value of the EPC Contract. The Deferred Payment will be a senior secured obligation of the Company guaranteed by the Company’s assets, to be serviced through a Deferred Payment Plan with 7% annual interest payable in quarterly installments. In connection with the Down Payment, Lion One will issue, subject to TSX-V approval, warrants in the amount of approximately 10% of the Loan Facility at a price of $1.42 per share for a period extending to the maturity date of the earlier of the final scheduled payment under the Deferred Payment Plan or 5 years from closing. Early repayment of the Deferred Payment Amount may occur any time without charge.

The Company and Ansteel will proceed to preparing definitive binding agreements for the transactions contemplated by the MOU, and are targeting completing the transaction in the fourth quarter of 2016.

The EPC Contractor, Ansteel-CapitalAsia Global Engineering Inc., is a JV company of Ansteel Group Engineering Technology Development Company Ltd and CapitalAsia Consulting (Canada) Inc. The Ansteel Group is based in Liaoning Province in northern China and is that country’s largest iron ore miner and third largest steel maker, with a production capacity exceeding 38 million tons of raw steel and pig iron. Ansteel’s steel unit is focused on products such as hot and cold rolled and galvanized steel sheets, color coating plates, silicon steel, wire rods, steel pipes, and large steel products widely used in automobile manufacturing, construction, ship-building, home electrical appliances, and in the manufacture of railways, pipelines, bridges, and power plants. The company operates several large iron ore mines and more than a dozen steel-rolling and steel production plants worldwide. Ansteel exports its products to over 30 countries including the USA, UK, Japan, and Australia, and is listed on the Hong Kong and Shenzen Stock Exchanges. In 2015 Ansteel was ranked number 451 on Fortune’s Global 500 List.

The Tuvatu Gold Project is located 17 km from the Nadi International Airport on the main island of Viti Levu in Fiji. Discovered in 1987, Tuvatu was advanced by previous owners through underground exploration and development from 1997 through to the completion of a feasibility study in 2000. Acquired by Lion One in 2011, the project has over 100,000 meters of drilling completed to date in addition to 1,600 meters of underground development. Tuvatu is a high grade, low sulphidation, epithermal gold deposit hosted inside a South Pacific-style volcanic caldera, along the Viti Levu lineament, Fiji’s own corridor of high grade gold deposits. In January 2016 the Hon. Prime Minister of Fiji, Mr. V. Bainimarama, formally presented the previously granted Tuvatu Mining Lease to Lion One, concluding the permitting process for the development of an underground gold mine and processing plant at Tuvatu, demonstrating strong government support for Fiji’s 85 year-old gold mining industry.

The Company envisages a low cost underground gold mining operation producing 352,931 ounces of gold at head grades of 11.30 g/t Au over an initial 7 year mine life, including 262,000 ounces at 15.30 g/t through year three, at cash costs of US$567 per ounce with all-in sustaining costs of US$779 per ounce. Total capex of US$48.6 million includes a contingency of US$6.1 million with an 18 month preproduction schedule and 18 month payback on capital. At a US$1,200 gold price the project generates net cash flow of US$112.66 million and an IRR of 52% (after tax). Tuvatu is situated upon a 5 hectare footprint inside a larger 384 hectare mining lease that contains numerous high grade prospects proximal to Tuvatu, at depth, and up to 1.2 km along strike from the resource area, giving the project near-term production potential and further discovery upside inside of one of Fiji’s underexplored volcanic goldfields.

The information in this report that relates to the Exploration Results or Mineral Resources is based upon, and fairly represents, information and supporting documentation compiled by Mr. Stephen Mann, who is an officer and director of the Company and is a member of The Australasian Institute of Mining and Metallurgy. Mr. Mann has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and the activity in which he is undertaking to qualify as a Competent Person under 2012 Edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr. Mann consents to the inclusion in this news release of the matters based on his information in the form and context in which it appears. The Company confirms that it is not aware of any new information or data that materially affects the information included in previous news releases referred to above, and confirms that the form and context in which the findings are presented have not been materially modified from the original news releases. Albert Siega, P. Eng., a full time employee of the Company and Qualified Person as defined by NI 43-101 has reviewed and approved the technical content of this release.

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Five mining leases approved by Fiji government

Director of Mineral Resources Malakai Finau

Director of Mineral Resources Malakai Finau

Watisoni Butabua | Fiji Village

Five mining leases have been approved by government.

Director of Mineral Resources Malakai Finau says out of the five, only two are currently operating at the moment and that is the Bua bauxite mine and the Vatukoula Gold mine.

Finau says more than 1 million tonnes of bauxite have been exported so far for Nawailevu.

He says in terms of royalty the department has collected approximately $1.2 million.

He says more than 100 workers have been employed by Aurum Exploration Limited.

The Director for Mineral Resources for the Vatukoula Gold Mine, they have exported about 39 thousand ounce of gold last year.

Finau says they expect similar amounts this year.

He says about 1000 people are currently employed by Vatukoula Gold Mine.

He also says that government has granted mining lease to Canadian Lion One Metals Limited for the Tuvatu Gold mine in Nadi.

Finau says they are in the construction period at the moment.

He says two other mining leases have also been granted to Asia Pacific Resources Limited for the Wainivesi Gold mine in Korovou, Tailevu and Amex Resources Limited for Iron sand mine at the Ba River.

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Fiji mining licence for Canadian company

Repeka Nasiko | The Fiji Times

CANADA-BASED Lion One Ltd will be officially handed a licence to mine at Tuvatu, Sabeto, this month.

The firm, which has invested about $56million on exploration works, will begin construction work on the mine’s processing plants.

Company lands and permit manager Moape Navia said board members were hoping to visit the country this month for the official handover of the mining lease documentation from Government.

“The company has to commence developing the mine area in building the infrastructure like the processing plants, tailing dam area and stockpiling ore and other infrastructures that relates to the mine,” he said.

“However, construction work on the processing has not begun yet.

“Landowners from Sabeto and Vaturu will benefit from the project.”

The company recently released the preliminary economic assessment report which revealed capital costs of $US48.6m ($F106.4m) would be spent over the 15-month pre-production schedule.

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200 jobs expected to be made in multi-million dollar Gold project in Nadi

200 jobs – but at what cost to the environment, our sustainable livelihoods and our culture?

Lets not forget what another Canadian company, Barrick, has done at Porgera in PNG…

lion one

Watisoni Butabua | Fiji Village

Lion One the Metals Limited was granted a Special Mining lease by the Lands and Mineral Resources Ministry.

About 200 jobs are expected to be created at the multi-million dollar Tuvatu Gold project in Nadi.

This is after the Canadian company Lion One the Metals Limited was granted a Special Mining lease by the Lands and Mineral Resources Ministry.

Land and Permit Manager, Moape Navia says the details are expected to be finalised at the end of this month.

He says the special mining lease provides them the exclusive rights to the potential development, construction, and operation of mining, processing, and waste management infrastructure at Tuvatu and the surrounding lease area.

He says the company was also granted a 21 year surface lease.

Meanwhile, the Mataqali Nacokula of Natawa village and the Mataqali Nabouwalu of Korobebe in Nadi have received $700,000 as a premium payment.

The mining lease area covers 373 hectares of land.

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Fiji grants licence to Canadian mining firm

Repeka Nasiko | Fiji Times

THE second largest gold mining venture in the country has moved into the second phase of development works after the company was granted a mining licence by the Mineral Resources Department earlier this year.

Tuvatu Gold Mines owner Lion One Ltd has begun construction work of its mining infrastructure and has begun recruiting more workers for the task.

Lion One Ltd’s lands and permit manager Moape Navia said the company was waiting to receive final mining lease documentation for the Tuvatu project.

“Once the documentation has been received, the company envisions it will commence some initial development works in the next few months,” Mr Navia said.

“Employment numbers will gradually increase as parts of the development phase occur.

“By the time we start producing our first gold, we will have a full workforce.

“With that said, there has been a lot of interest shown by locals in employment with the company.”

Mr Navia said the company had been making payments to relevant authorities, including landowners, as their works progressed.

“The company made the first significant premium payment of $700,000 to the landowners 12 months ago.

“The next payment is due on the pour of the first gold at Tuvatu and that’s the last in regards to premiums.

“Additionally, the company pays annual land rent to TLTB, and contributes to the communities in the area in many other ways.”

To date, the Canadian company has spent about $56million on the exploration phase and another $100m would be invested to build the mine.

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Fiji landowners get $700,000 in return for gold worth over $1 billion

A million ounces of gold will have a market value of over $1,150,000,000

The landowners have been bought off for $700,000

They get 0.06% of the value of the gold!

Green light for mine

Litia Mathewsell | The Fiji Times

EMPLOYMENT opportunities are expected to significantly increase this year at Tuvatu Gold Mine where a license to mine has been approved by the Ministry of Lands and Mineral Resources.

Mineral Resources director Malakai Finau confirmed the approval was issued on February 22, and they were working on other lease documents before the lease was granted.

Located in Sabeto outside Nadi, the mine is being developed by Canadian-based Lion One Ltd, whose lands and permit manager, Moape Navia confirmed this latest progress.

“We are now waiting on the terms and conditions of this mining lease, which should be finalised soon,” he said yesterday.

“To date, the exploration phase has been about $56million in expenditure and another $100million will be invested to build the mine.”

The base employs about 40 workers, which Mr Navia said would likely increase to 200 this year when the mining development commences, after waiting for about a year for the mining licence to be given the green light.

“We hope to extract a million ounces of gold which will be processed here and sold to markets and refiners overseas, likely in Australia,” he added.

The company obtained a 21-year surface lease from the iTaukei Land Trust Board, with a premium of $700,000 paid to landowners in Nagado and Korobebe villages in Ba Province.

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Fiji: $60m gold investment

Repeka Nasiko | Fiji Times

CANADIAN company Lion Metal One Ltd says it will invest up to $60million once its application for a mining licence is approved.

Site manager and project geologist Sevanaia Bulu said so far discussions looked positive.

The company hopes to extract about a million ounces of gold from the Tuvatu Gold Mine in the hills of Sabeto, having conducted exploration works over the past six years, and in the process investing about $20m.

“We hope to start next year but we are still waiting on our mining licence to be approved from the Mineral Resources Department.

Acting Commissioner Western Luke Moroivalu said the project would generate employment for neighbouring villages.

“I think these types of projects will bring about a lot of income for neighbouring communities,” Mr Moroivalu said.

“These come in the form of lease payments, of jobs and in time people will be earning money and improving their livelihoods.”

Tuvatu Gold Mine field geologist Waisale Kuruisaravai said the company was looking at extracting minerals in other parts of the country.

“We also have projects in other areas as well, one in Nasau and the other in Vanua Levu.”

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