Dear Lion One Subscriber,
The Company announces MOU for EPC Contract and Vendor Financing with Ansteel-CapitalAsia for construction of the 100% owned and fully permitted Tuvatu Gold Project in Fiji.
The scope of the EPC contract covers the design, construction, start-up testing, and commissioning of the Tuvatu gold processing plant. Ansteel will also furnish all materials, equipment, machinery, tools and consumables, provide quality control and administration, and will develop the Project Health and Safety Plan at the Project Site. In addition to the EPC Contract, Ansteel will also provide vendor financing for up to 80% of the anticipated value of the EPC Contract in the form of a Deferred Payment Amount of approximately US$39,000,000-$44,000,000. The Company will fund a minimum of US$10,000,000 or approximately 20% of the anticipated value of the EPC Contract. The Deferred Payment will be a senior secured obligation of the Company guaranteed by the Company’s assets, to be serviced through a Deferred Payment Plan with 7% annual interest payable in quarterly installments. In connection with the Down Payment, Lion Onewill issue, subject to TSX-V approval, warrants in the amount of approximately 10% of the Loan Facility at a price of $1.42 per share for a period extending to the maturity date of the earlier of the final scheduled payment under the Deferred Payment Plan or 5 years from closing. Early repayment of the Deferred Payment Amount may occur any time without charge.
Click here to view today’s complete news release on the Lion One website.
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