Lion One Metals sinks on cancelled $15M financing

Lion One Metals (TSXV: LIO) plunged more than 30% after a proposed financing from Australian investment firm Arete Capital Advisors collapsed and the company announced yet another CEO change.

North Vancouver-based Lion One said it has terminated the $15 million (US$11 million) private placement announced back in December, without disclosing reasons, according to a statement issued Friday. The transaction would have seen Arete subscribe to 44.26 million Lion One units priced at 34¢ per unit. Each unit carried one Lion One common share and a warrant to purchase shares at 39¢ each.

CEO Campbell Olsen, who was appointed to the role just over two months ago to complete the transaction with Arete, has been replaced on an interim basis by chief financial officier Tony Young, Lion One also said. Olsen had replaced Ian Berzins, who had held that role for 10 months after being appointed in February 2025.

Lion One shares sank 35% late Friday afternoon to a new intraday low of 14¢ in Toronto, shrinking the company’s market capitalization to about $56 million. The stock has lost about half its value in the past year.

Multiple challenges

The financing was intended to help with Lion One’s debt restructuring as it navigates both financial and operational challenges. In February, the company said it had received a default notice from Nebari Collateral Agent with respect to its senior loan facility. Two weeks later, it received a shareholder meeting requisition notice requesting the removal of certain directors.

Lion One’s Tuvatu gold mine in Fiji continues to struggle with production due to equipment and power constraints, which led to lower-than-planned throughput, as well as inconsistent gold grades and development delays.

The underground operation began full-scale mining in mid-2024 and was initially slated to produce about 331,400 oz. per year over a five-year life. However, its most recent quarterly production was just 4,200 oz.

Amid these challenges, the company announced last month it has planned a series of initiatives to improve the “medium-term growth and operating resilience” of Tuvatu, including a new tailings storage site, flotation circuit and other on-site facilities.

Arete was set to become the operator of the Tuvatu project as part of a master services agreement concurrent with the financing.