Lion One Announces Closing Of $27M Bought Deal Public Offering

NORTH VANCOUVER, British Columbia, May 11, 2023 (GLOBE NEWSWIRE) -- Lion One Metals Limited (TSXV: LIO) (ASX: LLO) (OTCQX: LOMLF) (“Lion One” or the “Company”), is pleased to announce that the Company has closed the bought deal offering (the “Offering”) previously announced on May 3, 2023 by issuing 29,350,000 units of the Company (the “Units”) at a price of $0.92 per Unit (the “Offering Price”) for aggregate gross proceeds of $27,002,000 pursuant to the terms of an underwriting agreement (the “Underwriting Agreement”) dated as of May 5, 2023, among the Company, Eight Capital (the “Lead Underwriter”), Canaccord Genuity Corp., Raymond James Ltd. and Roth Canada Inc. (together with the Lead Underwriter, the “Underwriters”).

Each Unit consists 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.

The Company has applied to list the Warrants on the TSX Venture Exchange (the “TSXV”) and the TSXV has conditionally approved such listing, subject to receipt of final documentation. It is expected that the Warrants will commence within three days following closing.

The Company intends to use the net proceeds to advance the exploration and development activities at its Tuvatu Alkaline Gold Project in Fiji by: (i) acquiring additional mining and process plant equipment, including infrastructure; (ii) advancing mine development including initial mining of high grade material; (iii) commissioning the process plant equipment; (iv) constructing the tailings dam storage facility; and (v) continuing its infill and deep feeder drilling programs. The Company will also use a portion of the net proceeds for working capital and general corporate purposes.

The Units issued pursuant to the Offering were concurrently qualified for distribution by way of an offering document in the form of National-Instrument 45-106F19 with respect to an offering of up to 10,869,562 Units at the Offering Price under the listed issuer financing exemption in Section 5A.2 of National Instrument 45-106 (the “LIFE Exemption”) and a prospectus supplement of the Company dated May 5, 2023 (the “Prospectus Supplement”) to the Company’s existing short form base shelf prospectus dated May 13, 2022 (the “Base Shelf Prospectus”) filed in the Provinces of British Columbia, Alberta and Ontario, and offered and sold to eligible purchasers by way of available prospectus exemptions in certain jurisdictions outside of Canada. 28,742,500 Units were issued pursuant to the Prospectus Supplement and 607,500 Units were issued pursuant to the LIFE Exemption. The Base Shelf Prospectus, the Prospectus Supplement, the documents incorporated by reference therein and the Underwriting Agreement are available on the Company’s profile on SEDAR at www.sedar.com.