Lion One Gets 11-Year Lease Extension
InvestorSarfari Comments:
“This significant investment will also allow the company to continue with its extensive mineral exploration drilling programme to improve geological confidence of the mineral resource within the mining lease area and also within its Special Prospecting Licences (SPLs), which will augur well for Lion One in building its mineral resource base and subsequently extend the Tuvatu Gold project mine life.”
From left: Acting Director for Mineral Resources Department Raymond Mohammed, Acting Manager Mines Unaisi Rawakela, Permanent Secretary Raijeli Taga, Minister for Lands and Mineral Resources Jone Usamate, Lion One Chief Operating Officer Patrick Hickey, Legal Officer Eparama Musuvanua and Mining Manager Sakiusa Waqanisa after the handover on July 14, 2022. Photo: Ministry of Lands and Miniral Resources
Lion One PTE Limited, a Toronto Stock Exchange Venture Exchange-listed company, received an 11-year extension to its lease (SML62), effective from 2024, when its current lease expires.
The company was initially granted SML62 in 2015 for a 10 year term. Within the 10-year term, Lion One Limited has invested over $140M in terms of exploration drilling and progressing mine development or construction in preparation for mine production.
Minister for Lands and Mineral Resources Jone Usamate during the hand over yesterday said given the work undertaken in terms of mineral resource appraisal and commencement of mine development, Lion One has expressed interest in extending its mining lease given its confidence in attain- ing rate of return on investment which justifies further investment in the Tuvatu Gold project.
“This renewal will ensure that Lion One injects an additional $50M-$100M in capital investment to complete mine development and undertake its first gold pour by the last quarter of 2023.”
“This significant investment will also allow the company to continue with its extensive mineral exploration drilling programme to improve geological confidence of the mineral resource within the mining lease area and also within its Special Prospecting Licences (SPLs), which will augur well for Lion One in building its mineral resource base and subsequently extend the Tuvatu Gold project mine life.”
“The level of investment made is truly reflective of the capital intensive nature of mineral development and mining and is also a sign of investor confidence in investing in Fiji which will aid in the country’s economic recovery and also boost the contribution of the mining sector to Fiji’s GDP.”
Lion One Chief Operating Officer Patrick Hickey said getting the license was one of the most important things that has happened to the project in a long time.
“For us to attract international investments, there has to be confidence in the government and the country.”
“We appreciate getting it.”
“This is a very hard business and that is why we need the support of the government.”
Commenting on the environmental impacts, Mr Hickey said they would make sure that there were minimum impacts and “We will make sure that we don’t damage the environment”.
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