Financings Routine −

Lion One Announces Non-Brokered Private Placement of Convertible Debenture Units for Gross Proceeds of up to $14 Million and Non-Brokered Private Placement of Units for Gross Proceeds of up to $3 Million

Lion One secures $17m to cure a Nebari default while production slumps at its Tuvatu asset.

By The Northwire Desk — AI Analysis Jun 04, 2026 · 21:53 LIO · 0.12 Lion One Metals Limited

Executive Summary

Lion One Metals announced a dual non-brokered private placement to raise up to $17 million in gross proceeds.
The primary tranche consists of convertible debenture units priced at $1,000 each, carrying a 10% interest rate, with conversion at $0.13 per share (an 8% premium to the $0.12 closing price) and warrants exercisable at $0.175.
A concurrent equity placement offers up to 23,076,923 units at $0.13 per unit, raising up to $3 million.
Proceeds are explicitly designated to satisfy upcoming obligations under the senior secured loan facility and cure an ongoing working capital covenant default.
Concept Capital Management is expected as the lead subscriber, marking a related-party transaction.
The financing follows a turbulent period marked by the termination of a strategic partnership with Arete Capital, the resignation of CEO Campbell Olsen, the retirement of founder Walter Berukoff, and a 38% quarter-over-quarter decline in gold production.

Material Impact

The financing is a necessary lifeline to avoid immediate default on the Nebari senior secured loan, but the terms are highly dilutive. Converting debt at the current trading price ($0.13) signals severe financial distress and a lack of alternative capital sources.
The market had already priced in the company's struggles following the abrupt termination of the Arete Capital partnership in May 2026 and the subsequent leadership vacuum.
While curing the default prevents immediate insolvency, the 10% interest rate and mandatory conversion at depressed levels will significantly erode existing shareholder equity.
The news is Routine - Negative because it confirms the company's reliance on expensive, dilutive debt to service existing obligations amid deteriorating operational metrics and executive turnover. It is an expected follow-up to the February 2026 default notice.

LIO · Price

Company Overview

Lion One Metals Limited is a gold exploration and development company focused on the Tuvatu Alkaline Gold Project in Fiji.
The flagship project is a 100% owned underground gold mine that transitioned to production in 2023.
The mine utilizes a combination of shrinkage stoping, cut-and-fill, and longhole mining methods.
Recent operational milestones include the commissioning of a new flotation circuit aimed at increasing gold recovery above 90%, and the approval of a $1.14 million evaporator system to eliminate process-water discharge.
The company has reported exceptionally high-grade drill intercepts in Zone 5, with intervals exceeding 100 g/t Au, supporting near-term underground expansion.

More from Lion One Metals Limited