Lion Copper Receives US$5 Million Additional Nuton Funding, Proposes Early Repayment of Convertible Debentures, Adopts Rolling Stock Option Plan and Grants Stock Options

Rhea-AI Summary

Lion Copper and Gold Corp (CSE: LEO) (OTCQB: LCGMF) has received US$5 million in additional funding from Nuton , a Rio Tinto subsidiary, for advanced studies and pre-feasibility study completion at the Yerington Copper Project. The company plans to repay US$941,813 in convertible debentures early by December 15, 2024, ahead of their February 16, 2025 maturity date.

The company has also adopted a new rolling stock option plan, replacing its previous fixed plan, allowing up to 20% of issued shares for stock options. Under this plan, 17,160,000 stock options were granted to directors, officers, employees and consultants, exercisable at C$0.085 per share with a five-year expiration.

Positive

• Secured US$5 million additional funding from Nuton for Yerington Copper Project studies
• Early repayment of US$941,813 in high-interest (20%) convertible debentures reduces debt burden
• Increased flexibility in equity compensation through new 20% rolling stock option plan

Negative

• Significant dilution potential from new rolling stock option plan allowing up to 20% of shares outstanding
• Large stock option grant of 17.16 million shares could dilute existing shareholders

Vancouver, British Columbia--(Newsfile Corp. - December 11, 2024) - Lion Copper and Gold Corp. (CSE: LEO) (OTCQB: LCGMF) ("Lion CG" or the "Company") is pleased to announce the receipt of an additional US$5,000,000 in funding from Nuton LLC, a wholly-owned subsidiary of Rio Tinto, under the Stage 2c Program of Work Amendment. The US$5,000,000 funding will be used to perform advanced studies and completion of the pre-feasibility study at the Yerington Copper Project (refer to news release dated November 19, 2024).

Early Repayment of Convertible Debentures

The Company has proposed early cash repayment by December 15, 2024, of its outstanding convertible debentures totaling US$941,813, originally due on February 16, 2025 (the "Debentures"). The debt repayment will be made from the Company's corporate account.

The Debentures carry an annual interest rate of 20%, with a maturity of 12 months. At the holder's option, the Debentures are to be repaid in cash or are convertible into common shares of the Company at a price of US$0.06 (C$0.08) per share. Accrued interest may also be converted into common shares of the Company at a conversion price equal to the market price at the conversion date.

The early repayment initiative aims to eliminate the Company's debt level.

Adoption of Rolling Stock Option Plan

The Company's Board of Directors has approved the adoption of a new rolling stock option plan (the "Plan"), replacing the previous fixed stock option plan.

The new Plan complies with the policies of the Canadian Securities Exchange, allowing the Company to reserve up to 20% of its issued and outstanding shares for stock option issuances. This structure provides increased flexibility to attract, retain, and motivate key personnel critical to the Company's growth.

Grant of Incentive Stock Options

Under the new Plan, the Company has granted an aggregate of 17,160,000 stock options to certain directors, officers, employees and consultants. The options are exercisable at a price of C$0.085 (US$0.06) per share and will expire five years from the date of grant.

About Lion CG

Lion Copper and Gold Corp. is a Canadian-based company advancing its flagship copper assets at Yerington, Nevada through an Option to Earn-in Agreement with Nuton LLC, a Rio Tinto Venture.

On behalf of the Board of Directors,
Steven Dischler
Chief Executive Officer
775-463-9600
For more information please contact:
Email: info@lioncg.com
Website: www.lioncg.com

Neither the Canadian Securities Exchange (CSE) nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "will", or the negative of these terms and similar expressions. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; the ability of Lion CG to implement its business strategies; competition; currency and interest rate fluctuations and other risks.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/233362

FAQ

How much additional funding did Lion Copper (LCGMF) receive from Nuton in December 2024?

Lion Copper received US$5 million in additional funding from Nuton , a Rio Tinto subsidiary, for advanced studies and pre-feasibility study completion at the Yerington Copper Project.

What is the early repayment amount for LCGMF's convertible debentures in December 2024?

Lion Copper plans to repay US$941,813 in convertible debentures by December 15, 2024, ahead of their original February 16, 2025 maturity date.

What is the exercise price and expiration for LCGMF's newly granted stock options?

The stock options are exercisable at C$0.085 (US$0.06) per share and will expire five years from the date of grant.

How many shares can be reserved under LCGMF's new rolling stock option plan?

The new rolling stock option plan allows Lion Copper to reserve up to 20% of its issued and outstanding shares for stock option issuances.