Mining Lease Extension Helps Derisk Gold Project in Fiji

The significant growth potential of the project also enhances its profile as a takeout target, noted a ROTH Capital Partners report.

Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX; LLO:ASX; LY1:FSE) received a 10-year extension of its Tuvatu mining lease from the Fiji government, which helps derisk the gold project and, in turn, increases its attractiveness to other parties, reported ROTH Capital Partners analyst Mike Niehuser in an August 8, 2022 research note.

The lease, covering 3.85 square kilometers, is now valid through and renewable on Feb. 28, 2035, relayed Niehuser.

“The extension of time, with the potential to explore and develop the balance of the Navilawa caldera, elevates the potential of Tuvatu to equal Vatukoula and approach other alkaline gold systems,” Niehuser commented.

The analyst believes Tuvatu will become one of the world’s highest-grade gold mines, on par with Vatukoula, an approximately 7,000,000–11,000,000 ounce gold mine that has been in operation for more than 85 years.

Given the typical significant depth and high grades of alkaline gold systems, Niehuser highlighted, Tuvatu has the potential to grow to the point where it would entice companies seeking to form a joint venture on the project or acquire it outright.

In the coming weeks, investors can expect a large amount of Tuvatu drill results from Lion One, Niehuser indicated.

“This should continue to demonstrate the expansion potential of the Tuvatu deposit, consistent with our investment thesis,” he added.

ROTH has a Buy rating and a CA$2.50 per share price target on Lion One, the current share price of which is around CA$1.30 per share.

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Disclosures for Roth Capital Partners, Lion One Metals Ltd., Aug. 8, 2022

Shares of Lion One Metals Limited may be subject to the Securities and Exchange Commission’s Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities. 

ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate.

This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH. Copyright 2022. Member: FINRA/SIPC

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