Lion One Metals sinks on cancelled $11M financing

Staff Writer | May 1, 2026 | 8:24 am Markets Australia NZ South Pacific Canada Gold

Tuvatu is an underground mine with only a small surface footprint for the plant. Credit: Lion One Metals

Lion One Metals (TSXV: LIO) plunged more than 30% on Friday after cancelling a proposed financing from Australian investment firm Arete Capital Advisors and seeing off another CEO.

In a press release, the gold miner said it has terminated the approximate C$15 million ($11 million) private placement announced back in December, without disclosing reasons. The transaction would see Arete subscribe to 44.26 million units of Lion One priced at C$0.34 per unit. Each unit carries one Lion One common share and a warrant to purchase shares at C$0.39 each.

It also announced the departure of chief executive officer Campbell Olsen, who was appointed to the role just over two months ago to complete the transaction with Arete. Olsen replaced Ian Berzins, who himself held that role for 10 months after being appointed last February.

Shares of Lion One Metals sank to a new low of C$0.14 on the news, taking its market capitalization down to about C$59 million ($43.5 million).

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 also received a shareholder meeting requisition notice requesting the removal of certain directors.

At the same time, its 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 also set to become the operator of the Tuvatu project as part of a master services agreement concurrent with the financing.