Lion One Metals Limited announced that it expects to receive CAD 49.937799 million in funding from Nebari Partners LLC, Nebari Holdings, LLC, Nebari Partners LLC, Nebari Holdings, LLC
January 12, 2023
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Lion One Metals Limited announced that it has entered into a facility agreement for the private placement of senior secured first lien term loan for gross proceeds of CAD 47,250,000 and 3,125,348 common shares at an issue price of CAD 0.860 per share for gross proceeds of $2,687,799.280 for aggregate gross proceeds of CAD 49,937,799.280 on January 13, 2023. The transaction will include participation from new investors, Nebari Gold Fund 1, LP, a fund managed by, Nebari Partners LLC, Nebari Natural Resources Credit Fund I LP and Nebari Natural Resources Credit Fund II, Lp, funds managed by, Nebari Holdings, LLC.
The total amount of the loan facility will be funded in up to three tranches, with CAD 31,050,000 to be funded in first tranche and an additional CAD 16,2000,000 available at the company's option in up to two further tranches within 18 months of first tranche. Interest on first tranche is 8% (plus three-month SOFR), and amortization is on the maturity date 42 months from the first tranche, with no closing fees payable. Tranches second and third are subsequent to an 8% original issue discount and interest is 10% plus SOFR, with progressive amortization over 42 months from the second tranche funding date, with closing fees equal to 2% of the amounts funded.
On the date of first tranche, the lenders will be issued 15,333,087 non-transferable purchase warrants in the company, with each warrant exercisable into common shares of the company at a price of CAD 1.490 for a period of 48 months from issuance. The warrants will be subject to an accelerator provision whereby the company may accelerate the expiry date of up to 25% of the initial warrants in the event that the volume weighted average trading price of the common shares of the company exceeds 100% over the strike price for a period of twenty consecutive days. The company has the option to accelerate the expiry of further 25% portions of the warrants at four-month intervals, up to a maximum of 75% of the warrants issued.
Lion One Metals Limited is a Canada-based exploration company. The Company is engaged in the business of mineral exploration and evaluation and is primarily focused on the acquisition, exploration and evaluation of mineral resources in Fiji. The Company owns 100% of Tuvatu Alkaline Gold Project, which is located approximately 24 kilometers northeast of the town of Nadi on the island of Viti Levu in the Republic of Fiji. The area surrounding the Tuvatu gold deposit and resource area is covered by approximately three-square kilometers of special mining lease (SML 62), with the broader project area covered by approximately 13,613 hectares of special prospecting licenses (SMLs 1283, 1296, 1465 and 1512), covering the balance of the Navilawa caldera. The SML 62 provides rights for the potential development, construction, and operation of mining, processing, and waste management infrastructure at Tuvatu. The Company holds over four exploration licenses (SPLs) for the Tuvatu properties.
Lion One Metals Limited announced that it expects to receive CAD 49.937799 million in funding from Nebari Partners LLC, Nebari Holdings, LLC, Nebari Partners LLC, Nebari Holdings, LLC