Lion Selection Group Limited (ASX:LSX) today announced its commitment to invest $5.0 million in Saturn Metals (ASX:STN). Saturn Metals is a gold exploration and development company focused on its Apollo Hill Gold Project. This investment forms part of Saturn’s $105.0 million capital raising, comprising a $100.0 million placement and a $5.0 million Share Purchase Plan. This capital infusion significantly bolsters Saturn’s financial position.
This newly secured financing positions Saturn to fund its Definitive Feasibility Study for Apollo Hill well beyond completion. The project recently increased its Mineral Resource inventory to 2.83 million ounces of gold. Apollo Hill is characterised as a large, simple gold ore body amenable to low unit cost mining and treatment, with estimated production costs promising a robust operating margin over a long production life at current gold prices. Recent drilling has also identified high-grade lodes, adding attractive growth potential.
This $5.0 million investment elevates Lion’s total commitment in Saturn to $17.0 million, making Saturn its largest and most valuable holding. Assuming successful completion of the capital raise, Lion’s pro-forma holding in Saturn would be valued at $38.4 million, based on Saturn’s last closing price of 45 cents per share. Conducted at 40 cents per share, the fundraising will increase Lion’s interest in Saturn to approximately 10.5%. Lion Managing Director Hedley Widdup noted that Apollo Hill presents a compelling value-versus-price investment for Lion due to its growing large resource, single open pit accessibility, and low-cost processing. He added this funding positions Saturn to advance exploration, complete its DFS, and secure long lead item procurement, bolstering its development financing path.
