Lion One Metals Limited announced that it has entered into a facility agreement for the private placement of senior secured first lien term loan for gross proceeds of CAD 47,250,000 and 3,125,348 common shares at an issue price of CAD 0.860 per share for gross proceeds of $2,687,799.280 for aggregate gross proceeds of CAD 49,937,799.280 on January 13, 2023. The transaction will include participation from new investors, Nebari Gold Fund 1, LP, a fund managed by, Nebari Partners LLC, Nebari Natural Resources Credit Fund I LP and Nebari Natural Resources Credit Fund II, Lp, funds managed by, Nebari Holdings, LLC.

The total amount of the loan facility will be funded in up to three tranches, with CAD 31,050,000 to be funded in first tranche and an additional CAD 16,2000,000 available at the company's option in up to two further tranches within 18 months of first tranche. Interest on first tranche is 8% (plus three-month SOFR), and amortization is on the maturity date 42 months from the first tranche, with no closing fees payable. Tranches second and third are subsequent to an 8% original issue discount and interest is 10% plus SOFR, with progressive amortization over 42 months from the second tranche funding date, with closing fees equal to 2% of the amounts funded.

On the date of first tranche, the lenders will be issued 15,333,087 non-transferable purchase warrants in the company, with each warrant exercisable into common shares of the company at a price of CAD 1.490 for a period of 48 months from issuance. The warrants will be subject to an accelerator provision whereby the company may accelerate the expiry date of up to 25% of the initial warrants in the event that the volume weighted average trading price of the common shares of the company exceeds 100% over the strike price for a period of twenty consecutive days. The company has the option to accelerate the expiry of further 25% portions of the warrants at four-month intervals, up to a maximum of 75% of the warrants issued.