Lion One Metals Ltd’s new operator for its gold mine in Tuvatu, nestled in the hinterlands of Sabeto, Nadi, is optimistic about transforming the site into a premier underground gold operation, not only within the Asia-Pacific region but also on a global scale. This positive outlook comes on the heels of a significant subscription agreement with Arete Capital Advisory Pty Ltd, enabling the investment firm to acquire a 9.9 percent stake in the mine for C$15.05 million (roughly F$24.32 million).
Arete Capital Advisory, based in Melbourne, has been involved with Lion One since a financing agreement was established last December. The company, listed on the Toronto Stock Exchange (TSX) and founded by mining entrepreneur Walter Berukoff, has faced hurdles in achieving shareholder returns despite active prospecting in Tuvatu since 2014.
In a company announcement, Campbell Olsen from Arete expressed enthusiasm about forming a long-term strategic partnership with Lion One at this critical juncture for the Tuvatu Gold Mine. He noted the uniqueness of Tuvatu, highlighting its high-grade alkaline gold system, substantial potential, established infrastructure, and numerous targets across the Navilawa Caldera. This combination offers a promising foundation for production growth and resource expansion.
Olsen, who is the CEO of Arete Capital Advisors, emphasized the firm’s extensive experience in operational and financial management when it comes to developing mid-tier gold assets into profitable entities. He stated, “We see a clear pathway to unlock significant incremental value at Tuvatu through disciplined mine optimization and an aggressive, data-driven exploration program.”
The agreement outlines a five-year master services arrangement, whereby Arete will provide management services at the Tuvatu Gold Mine, gradually transitioning into the role of operator under the governance of Lion One’s board. Berukoff expressed excitement over welcoming Arete as a key shareholder and partner, asserting that this collaboration could enhance Tuvatu’s potential and contribute to long-term value for all stakeholders involved.
This management transition coincides with notable changes at Lion One, including the unexpected departure of CEO Ian Berzins and board member Tayfun Eldem. Prior to leaving, Berzins revealed that the company was handling secured debt amounting to US$32 million (F$70.55 million).
The partnership between Lion One and Arete Capital Advisors is poised to be a critical move in revitalizing the Tuvatu project, promising significant economic benefits and spotlighting the mine’s unrealized potential. As this new collaboration unfolds, stakeholders will be keenly observing strategic decisions that could elevate Tuvatu’s prominence on the international stage.