The new operator of Lion One Metals Ltd’s gold mine in Tuvatu, located in the hinterlands of Sabeto, Nadi, is expressing optimism about transforming the mine into a leading underground gold operation, not just in the Asia-Pacific region, but globally. The positive outlook follows Arete Capital Advisory Pty Ltd’s recent subscription agreement, which allows the investment syndicate to acquire a 9.9 percent stake in the mine for C$15.05 million (approximately F$24.32 million).
Arete Capital Advisory, a specialized firm managed from Melbourne, has entered into a financing agreement with Lion One since last December. Lion One, which is listed on the Toronto Stock Exchange (TSX), was established by mining magnate Walter Berukoff. The company’s operations at Tuvatu have faced challenges in generating shareholder returns, despite being active in prospecting in the area since 2014.
“We are delighted to become a long-term strategic partner to Lion One at this pivotal stage in the evolution of the Tuvatu Gold Mine,” stated Campbell Olsen of Arete in a company announcement. He highlighted the rare nature of Tuvatu as a high-grade alkaline gold system with substantial potential, established infrastructure, and multiple targets across the broader Navilawa Caldera. This promising combination presents a strong foundation for production growth and resource expansion.
Olsen, the CEO of Arete Capital Advisors, noted that the firm possesses extensive operational and financial experience in developing mid-tier gold assets into profitable ventures. “We see a clear pathway to unlock significant incremental value at Tuvatu through disciplined mine optimization and an aggressive, data-driven exploration program,” he remarked.
The details of the subscription agreement include a five-year master services agreement in which Arete will provide management services for the Tuvatu Gold Mine, transitioning to the role of operator under the oversight of Lion One’s board of directors. Berukoff expressed his enthusiasm for welcoming Arete as a significant new shareholder and partner, emphasizing that this collaboration enhances the potential of Tuvatu and aims to create long-term value for stakeholders.
This management transition follows significant changes within Lion One, including the unexpected departure of CEO Ian Berzins and board member Tayfun Eldem. Just prior to his exit, Berzins disclosed that the company was managing a secured debt of US$32 million (F$70.55 million).
The collaboration between Lion One and Arete Capital Advisors marks a crucial step in revitalizing the Tuvatu project and could lead to substantial economic benefits, drawing attention to the mine’s untapped potential. As they embark on this new partnership, all eyes will be on their strategic moves to elevate Tuvatu’s status on a global scale.