Lion One Announces C$27 Million “Bought Deal” Offering of Units

NORTH VANCOUVER, British Columbia, May 03, 2023 (GLOBE NEWSWIRE) --

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Lion One Metals Limited (TSX-V: LIO) (OTCQX: LOMLF) (ASX: LLO) (“Lion One” or the “Company“) is pleased to announce that it has entered into an agreement with Eight Capital, as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters (collectively, the “Underwriters“), pursuant to which the Underwriters have agreed to purchase, on a “bought deal” basis, 29,350,000 units of the Company (the “Units“) at a price of C$0.92 per Unit (the “Issue Price”), for total gross proceeds of C$27,002,000 (the “Offering“).

Each Unit will consist of one common share (a “Common Share”) in the capital of the Company and one-half (1/2) of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”) of the Company. Each Warrant shall be exercisable to acquire one Common Share (a “Warrant Share”) at a price per Warrant Share of C$1.25 for a period of 30 months from the closing date of the Offering.

If, following the closing of the Offering, the volume weighted average trading price of the Common Shares on the principal exchange on which the Shares are listed for any 20 consecutive trading days equals or exceeds C$2.00, the Company may, upon providing written notice to the holders of Warrants, accelerate the expiry date of the Warrants to the date that is 30 days following the date of such written notice.

In addition, the Company has agreed to grant the Underwriters an option (the “Over-Allotment Option”), exercisable in whole or in part, for a period of 30 days after the closing of the Offering, to purchase up to an additional 15% of the number of Units sold pursuant to the Prospectus Supplement (as defined below), on the same terms as the Offering, to cover over-allotments and for market stabilization purposes.

The net proceeds from the sale of the Units will be used for development and exploration of the Company’s Tuvatu Gold Project, as well as working capital and general corporate purposes.

The Units will be offered (i) in the Provinces of British Columbia, Alberta and Ontario (the “Shelf Prospectus Provinces”) by way of a prospectus supplement (the “Prospectus Supplement”) to the Company’s base shelf prospectus dated May 13, 2022 (the “Base Shelf Prospectus”); and (ii) in each of the Provinces of Canada, other than the Shelf Prospectus Provinces and Quebec, pursuant to the listed issuer financing exemption (the “LIFE Exemption”) under part 5A of National Instrument 45-106 – Prospectus Exemptions (“NI 45-106”). In accordance with NI 45-106, up to a maximum of 10,869,565 Units (the “LIFE Units”) may be issued pursuant to the LIFE Exemption in connection with the Offering.