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 is an Australian specialist resources investment company. Peregrine Gold is focused on gold, iron ore, and lithium exploration in Western Australia’s Pilbara region.
Peregrine Gold’s exploration efforts are currently divided between early-stage gold concepts along the Mallina fault, near Hemi, and more advanced prospects west of Newman. Surface prospecting has identified two large iron ore occurrences, interpreted as valley-type channel iron deposits. Surface sampling results are consistent with other channel iron deposit projects in the Pilbara. These prospects benefit from their location relative to infrastructure and offer potential for new resource discoveries.
Lion’s $0.5 million investment is part of a placement priced at 22 cents per share. Investors will also receive one free option for every two new shares issued, exercisable at $0.33 each, expiring three years from the issue date. Following the completion of the placement, Lion will hold a 2.3% stake in Peregrine Gold.
Hedley Widdup, Managing Director of Lion, commented on the investment, highlighting Peregrine’s well-located channel iron prospects. He noted the potential for significant value growth through discovery, adding diversification to Lion’s gold-oriented portfolio. Widdup stated that the prospects offer attractive scale if their large surface footprints are proven through drilling.
