Lion provides funding at an early stage to assist mineral resource companies along the development curve.
Over the longer term, history has shown that carefully selected junior resource companies can experience a positive value re-rating as they progress from explorer to producer. This approach requires a long-term investment view, and avoids the risks of speculating on factors that might affect share prices in the short term. The likelihood of this occurring is enhanced by backing high-quality people.
Mining investment market is constantly monitored to identify opportunities and trends.
Investments are carefully selected from a large global universe.
Project assessment: blend of valuation and risk assessment, targeting multiples as returns.
Lion targets junior mining and exploration companies with a mineral commodity focus.
High-quality people are essential.
Pre-production. Project expansion by exception.
Equity only: generally seek 5–20% shareholding.
Global universe: Lion can contemplate unlisted investments and companies listed on any exchange. Lion provides seed, pre-IPO and ongoing funding.
Investment Exit Approach
Investment returns are cast by effective exits. Lion times exits around considerations of value, stage of project development and the timing of the investment cycle.
The ability to sell a large percentage holding coincides with liquidity. For Lion’s target investments, this typically occurs after a company has funded and developed a project to become a producing company.
Historically Lion has been able to exit via on-market sale of shares, block trades or corporate transactions.