Lion One Announces Forbearance Agreement with Senior Lender Including Extension of Repayment Date
Rhea-AI Summary
Lion One Metals (OTCQX: LOMLF, TSXV: LIO) has entered into a forbearance agreement with senior secured lenders Nebari Gold Fund 1, Nebari Natural Resources Credit Fund I and II, extending the final repayment date for Tranche 1 of its senior loan facility to December 31, 2026.
The Facility, put in place in January 2023, totals approximately US$31.2 million of principal outstanding (about US$25.8 million on Tranche 1 and US$5.4 million on Tranche 2; Tranche 3 is repaid). Lion One reports that earlier financial and non‑financial default events, including a breach of a US$7,000,000 working capital covenant, have been cured and the interest margin has reverted to the original level. Part of the net proceeds from a recent US$17.5 million non‑brokered private placement was used to meet Facility obligations and cure the covenant default.
As consideration for extending Tranche 1, Lion One will pay Nebari a US$2,000,000 restructuring fee, which may be reduced to US$1,000,000 if all Facility obligations are fully repaid on or before September 30, 2026. The company has launched a refinancing strategy, potentially involving new senior debt, additional financings and cash from operations, targeting completion by the end of 2026.
Positive
- Tranche 1 maturity extended to December 31, 2026
- Total Facility principal outstanding approximately US$31.2 million
- Working capital covenant default of US$7,000,000 cured
- US$17.5 million financing helped satisfy Facility obligations
- Restructuring fee cut to US$1,000,000 if repaid by Sept 30, 2026
Negative
- Prior financial and non-financial default events occurred in 2026
- Restructuring fee up to US$2,000,000 payable to Nebari
- Tranche 1 principal about US$25.8 million remains outstanding
- Tranche 2 principal about US$5.4 million remains outstanding
- Company targeting refinancing of Facility by end of 2026
News Explained
The repayment extension is conditional: under the Forbearance Agreement, Lion One must remain compliant with the Facility through the revised
News Market Reaction – LOMLF
In the Jul 23 session, LOMLF declined 4.18%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
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North Vancouver, British Columbia--(Newsfile Corp. - July 23, 2026) - Lion One Metals Limited (TSXV: LIO) (OTCQX: LOMLF) ("Lion One" or the "Company") is pleased to announce that it has entered into a forbearance agreement (the "Forbearance Agreement") with its senior secured lenders Nebari Gold Fund 1, LP, Nebari Natural Resources Credit Fund I, LP and Nebari Natural Resources Credit Fund II, LP (each as Lender and collectively, "Nebari") pursuant to which Nebari has agreed to extend the final repayment date for Tranche 1 of the Company's loan facility to December 31, 2026. The Company also announces that it has cured the financial and non-financial default events that occurred under the terms of the loan facility. Forbearance requires the Company to remain in compliance with its obligations under the loan facility going forward.
In January 2023, the Company entered into a senior secured loan facility agreement (the "Facility") with Nebari consisting of three separate Tranches, all three of which have been drawn. The principal amount outstanding on Tranche 1 is approximately US
Interest on Tranche 1 of the Facility was set at
On January 31, 2026, the Company received a notice from Nebari stating that an event of default had arisen from non-financial covenants and therefore the margin component of the interest rate payable under the Facility was increased in accordance with the terms of the Facility, effective February 20, 2026. A second subsequent financial default event occurred on March 31, 2026 as the Company was in breach of the
As consideration for the extension of the repayment date for Tranche 1 of the Facility, the Company has agreed to pay a restructuring fee to Nebari of US
As part of the Company's strategic planning in connection with its capital structure and the Forbearance Agreement, it has launched a re-financing strategy targeting various financing initiatives to repay the Facility. This may be comprised of a new refinanced senior debt facility or a combination of financing initiatives, including debt facilities, equity offerings and deployment of cash from operations to fund debt reduction. The Company plans to target completion of this strategy by the end of 2026.
About Lion One Metals Limited
Lion One Metals is an emerging Canadian gold producer headquartered in North Vancouver BC, with new operations established in late 2023 at its
On behalf of the Board of Directors,
Ian Berzins, Chief Executive Officer, President, and Board Member
Contact Information
Email: info@liononemetals.com
Phone: 1-855-805-1250 (toll free North America)
Website: www.liononemetals.com
Neither the TSX-V nor its Regulation Service Provider accepts responsibility or the adequacy or accuracy of this release
This press release may contain statements that may be deemed to be "forward-looking statements" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "proposed", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. This forward-looking information reflects Lion One Metals Limited's current beliefs and is based on information currently available to Lion One Metals Limited and on assumptions Lion One Metals Limited believes are reasonable. These assumptions include, but are not limited to, the actual results of exploration projects being equivalent to or better than estimated results in technical reports, assessment reports, and other geological reports or prior exploration results. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of Lion One Metals Limited or its subsidiaries to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the stage development of Lion One Metals Limited, general business, economic, competitive, political and social uncertainties; the actual results of current research and development or operational activities; competition; uncertainty as to patent applications and intellectual property rights; product liability and lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting mining, timing and availability of external financing on acceptable terms; not realizing on the potential benefits of technology; conclusions of economic evaluations; and lack of qualified, skilled labor or loss of key individuals. Although Lion One Metals Limited has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. Accordingly, readers should not place undue reliance on forward-looking information. Lion One Metals Limited does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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