Lion Selection Group Limited (ASX:LSX) has announced a $0.5 million investment in Peregrine Gold (ASX:PGD) as part of a $3 million placement. Lion Selection Group focuses on investments in the junior resources sector. Peregrine Gold is a gold, iron ore and lithium explorer with exploration tenure in the Pilbara region of Western Australia.
The placement is priced at 22 cents per share. Peregrine will also issue one free attaching option for every two new shares issued pursuant to the placement. These options are exercisable at $0.33 each and will expire three years from the date of issue. Upon completion of the placement, Lion Selection Group will hold a 2.3% shareholding in Peregrine Gold.
Peregrine’s exploration focus is split between early-stage gold concepts along strike from Hemi and more advanced prospects near Newman. Recent surface prospecting has identified two large iron ore occurrences, interpreted as valley-type channel iron deposits. These prospects are well-located regarding infrastructure, offering new resource discovery opportunities with scale potential.
Lion Managing Director Hedley Widdup commented on the investment, stating that Peregrine’s channel iron prospects are exceptionally well-located. He added that if the large surface footprints can be proven through drilling, the investment offers great diversity for Lion, as well as tremendous potential value growth through discovery.
