Tag Archives: Tuvatu Gold Project

The Next Gold Mine in Tropical Paradise Obtains $40 Million Financing

Lion One Drill Pad, Tuvatu

Two projects on a mining-friendly tropical island are moving forward, one in the final ramp-up to production and one at a very early stage.

Streetwise Reports  | 12 June 2018

Thoughts of Fiji conjure up the tropics, beaches and sunshine, but the island nation is also noted for its mineral production. The Vatukoula mine, in operation for over 80 years, has produced more than seven million ounces of gold.

Vying to join its ranks on the politically stable and mining friendly island are Lion One Metals Limited  and Thunderstruck Resources Ltd., two companies at opposite ends of the spectrum.

Thunderstruck Resources is an early stage exploration company with an extensive portfolio of properties on Viti Levu, the main island of Fiji. The company is conducting exploration activities at its large land package—covering 4% of Viti Levu—of “100% owned high grade zinc, copper and gold assets,” it reported in mid-May. According to Thunderstuck, it is “building on extensive prior results that point to the potential for large mineralized systems.”

At the end of May, Thunderstruck closed an oversubscribed private placement, raising over $200,000, selling 2.2 million units at $0.09 each. Each unit contained one common share and one share purchase warrant, with the option to buy a common share for $0.15 until May 2021.

Lion One’s 100%-owned Tuvatu project is at a much more advanced stage and is on track to put into production Fiji’s next mine. The company just announced a US$40 million debt financing package to develop the mine and build a processing plant for its fully permitted project. The financing is with Sinosteel Equipment & Engineering Co. Ltd. and Baiyin International Investment Inc. Sinosteel will be the EPC (Engineering, Procurement and Construction) contractor for the project, and Baiyin will be the gold doré offtaker.

The agreement is for a five-year term at a 7.5% interest rate. There will be a principal holiday and capitalized interest for either the earlier of two years from first draw, or three months after achieving commercial production. There also will be a Net Smelter Return (NSR) royalty of 2.25% on the first 350,000 ounces of gold produced. There is also an option to increase the financing by US$10 million.

Analyst Derek Macpherson of Red Cloud Klondike Strike Inc. noted on June 4 that with the debt financing in place, Tuvatu construction is expected to ramp up and views this as “very positive.”

Macpherson also noted that the “PEA (2015) outlines initial capital investment (excluding working capital) for Tuvatu at US$48.6M. With exploitation permits in-hand and C$21.6M (US$16.6M) in cash, the company is well positioned to continue on the path to construction and production.”

Analyst Mike Niehuser of Scarsdale Equities wrote on June 6, “The PEA assumed modest capital costs and efficient mining of high-grade gold resources, resulting in significant cash flow, which may rapidly repay capital and fund mine development and additional exploration of prospective gold targets.”

Niehuser also stated, “We expect that Lion One will announce an updated capital cost budget that should be within expected variances of the PEA. It appears that the facility should be adequate to cover the construction and capital costs with cash on hand. The terms appear to be competitive and do not include hedging or prepayment fees. Lion One continues exploration activities for which we believe could be a long-lived mine.”

Scarsdale Equities maintains a Buy rating and a target price of CA$1.40 on Lion One, which is currently trading at around CA$0.63.

While Lion One has been securing financing for the project, it also has continued exploration activities. Following the release of an off-the-charts surface sample of 502 g/t gold over 0.70 meters in February, on June 7, the company announced that follow-up work has mapped “more than 20 previously undefined mineralized structures at the Jomaki-Ura Creek prospect areas and identified potential geological extensions on the main mineralized zones inside the Tuvatu Mining Lease.”

Stephen Mann, Lion One’s managing director, stated, “In the Tuvatu resource area, approximately half of the 40 veins identified to date have sufficient sample data from drilling to merit inclusion in a resource estimate. We’ve now identified more than 20 mineralized veins at surface in the Jomaki-Ura Creek area where strong multi-element anomalism suggests potential scale and signature comparable and possibly larger than the main resource area at Tuvatu.”

Lion One has about 102 million shares outstanding, 109 million fully diluted. Management owns 22% of the shares and Donald Smith & Co owns 14%, Franklin Precious Metals Fund 9.99% and JP Morgan Asset Management UK 6%.


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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 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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Lion One receives Environmental Approvals for construction and development at Tuvatu Gold Project in Fiji

Lion One Metals | Marketwired 

Lion One Metals Limited announces that the Company has received approval from the Fiji Government’s Department of Environment for its Construction Environment Management Plan and Operation Environmental Management Plan (the EMP’s) for its 100% owned Tuvatu Gold project, located near Nadi on the island of Viti Levu in Fiji.

The Construction and Operation EMP’s have been approved for the potential future development of processing plant, construction of roads, underground and open cut mine construction, mine site infrastructure, tailings, pipeline, and water management facilities, and follows extensive consultations with the Mineral Resources Department, Rural Local Authority, Town and Country Planning, Lands Department, Forestry Department, and i-Taukei Land Trust Board, following the approval of the Company’s Environmental Impact Assessment (see announcement dated Feb.11, 2014). The Company is currently conducting a number of additional studies, including two independent processing plant studies, a mine plan and development study, and geotechnical studies for the potential tailings dam facility and the processing plant site for Tuvatu, all of which are expected to conclude by December 2014.

About Tuvatu

Tuvatu is a high grade, vein-hosted gold deposit located on the island of Viti Levu in Fiji. Tuvatu is situated on the Viti Levu lineament, 35 km along trend from Vatukoula, Fiji’s largest gold deposit and oldest gold operating mine, with over 7 million ounces of production over 75 years (per VGM website 2014). Both deposits are low-sulphidation epithermal gold deposits related to alkalic volcanic intrusive complexes. In late 2013, the Company received Department of Environment approval for the Tuvatu Environmental Impact Assessment and in 2014 signed a 21-year Surface Lease (see news release dated  May 22, 2014), and upgraded Tuvatu’s indicated resource to 1,101,000 tonnes at a grade of 8.46 grams per tonne gold (g/t Au) and inferred resource to 1,506,000 tonnes at a grade of 9.70 g/t Au, at a cut-off grade 3.0 g/t Au (see news release dated June 4, 2014).

About Lion One Metals

Lion One Metals is a mineral exploration and development company based in North Vancouver, BC, focused on the advancement of its high grade Tuvatu Gold Project in Fiji.

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Fiji Gold deal

Repeka Nasiko | The Fiji Times

CANADIAN company, Lion One Metals Limited has secured a 21-year surface lease from the iTaukei Lands Trust Board to begin its Tuvatu Gold Project in Nadi.

The announcement was made last week after a three-year discussion with landowners.

“The agreement for the Tuvatu Surface Lease was reached after nearly three years and well over 200 consultations and meetings with local communities and landowners,” said company chairman and CEO Walter Berukoff.

“With the surface lease secured and an approved Environmental Impact Assessment we are now focused on securing a Mining Licence for Tuvatu.”

The company explained it had received approval on their Environmental Impact Assessment from the Department of Environment in February.

“In addition, to ongoing exploration activities, the EIA contemplated the impact of both surface and underground mining at Tuvatu. Fiji’s Department of Environment has notified the Mineral Resources Department (MRD) that the EIA is approved and recommended to the MRD that mining activities may proceed at Tuvatu.

“Lion Metals Ltd filed its application for a Mining Licence with the MRD for Tuvatu in 2013.”

The company projects that a capital of more than $9.3million would be retained from the project.

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Fiji: Lion One Secures Surface Lease for Tuvatu

Wall Street Journal

Lion One Metals Limited announces it has reached an agreement with Fiji’s iTaukei Land Trust Board (the “TLTB”) on terms of a 21-year Surface Lease for the Tuvatu Gold Project (“Tuvatu”), located near Nadi on the island of Viti Levu in Fiji.

“The agreement for the Tuvatu Surface Lease was reached after nearly three years and well over 200 consultations and meetings with local communities and landowners,” said Lion One Chairman and C.E.O. Walter Berukoff.

“With the Surface Lease secured and an approved Environmental Impact Assessment we are now focused on securing a Mining License for Tuvatu.”

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