8-K: Lion Copper and Gold Secures Additional $5 Million Funding for Yerington Copper Project

Lion Copper and Gold Corp. has announced an additional US$5 million in funding from Nuton LLC to advance its Yerington Copper Project in Nevada.

Summary

• Lion Copper and Gold Corp. will receive an additional $5 million in funding from Nuton LLC, a subsidiary of Rio Tinto, for its Yerington Copper Project.
• This funding is part of an amended earn-in agreement and will be used for advanced studies and completion of a pre-feasibility study (PFS).
• The agreement extends the Stage 2 program to June 30, 2025.
• The total funding provided by Nuton under the agreement now stands at $28 million, with $19 million as advance funding for Stage 3.
• The project aims to utilize Nuton's copper leaching technologies, which could offer environmental, social, and economic benefits over traditional methods.
• The advanced studies will include additional exploration and geotechnical drilling, pending necessary permits from the Nevada Department of Environmental Protection (NDEP).

Sentiment

Score: 8

Explanation: The document conveys a positive sentiment due to the additional funding, continued partnership with Nuton, and the potential for advanced copper production technologies. The project is progressing as expected, with a clear path towards further development.

Positives

• The additional $5 million in funding from Nuton demonstrates continued support for the Yerington Copper Project.
• The extension of the Stage 2 program to June 30, 2025, provides more time for advanced studies and completion of the PFS.
• The use of Nuton's technologies has the potential to unlock substantial value and produce copper with significant environmental, social, and economic benefits.
• The project is advancing towards a pre-feasibility study, a key step towards potential production.
• The Yerington district has a substantial copper endowment of over 17 billion pounds.

Risks

• The project is subject to obtaining required permits from the Nevada Department of Environmental Protection (NDEP).
• The decision to proceed with a Feasibility Study and earn-in for Stage 3 is dependent on the results of Stage 2c.
• The project is subject to risks associated with exploration activity, general economic conditions, and market fluctuations.

Future Outlook

The company plans to continue advanced studies at Yerington, including additional exploration and geotechnical drilling, with the goal of completing a pre-feasibility study and informing Nuton's decision on whether to proceed with a Feasibility Study and earn-in for Stage 3.

Management Comments

• Steve Dischler, CEO of Lion CG, stated that they are pleased to continue working closely with Nuton to advance the Yerington Copper Project toward production.
• Steve Dischler also noted that applying Nuton's technologies has the potential to unlock substantial value by producing domestic copper with significant environmental, social and economic benefits compared to traditional copper production methods.
• The current funding reinforces Nuton's and Lion CG's aligned goal to demonstrate the commercial deployment of NutonTM copper leaching technologies at Yerington.

Industry Context

This announcement highlights the growing interest in innovative copper leaching technologies, particularly those that offer environmental and economic advantages over traditional methods. Rio Tinto's investment through Nuton reflects a broader industry trend towards sustainable and efficient copper production.

Comparison to Industry Standards

• Rio Tinto's Nuton technology aims to achieve market-leading recovery rates in copper leaching, which is a key differentiator compared to traditional methods.
• The focus on producing the world's lowest footprint copper aligns with increasing industry and investor emphasis on environmental, social, and governance (ESG) factors.
• Other companies such as BHP and Freeport-McMoRan are also exploring and implementing advanced leaching technologies, but Nuton's proprietary approach and focus on positive impact across multiple pillars (water, energy, land, materials, and society) sets it apart.
• The Yerington project's potential to unlock copper from primary sulfide resources through leaching is a significant advantage, as many traditional copper projects face challenges with declining ore grades and increasing environmental concerns.

Stakeholder Impact

• Shareholders will benefit from the continued progress of the Yerington Copper Project and the potential for future value creation.
• Employees may see increased job opportunities as the project advances.
• Customers may benefit from a more sustainable and efficient source of copper.
• Suppliers may see increased business opportunities related to the project.
• Creditors may see reduced risk due to the project's progress and funding.

Next Steps

• The company will continue advanced studies at the Yerington site.
• Additional exploration and geotechnical drilling will be conducted, pending permits.
• The company will complete the pre-feasibility study (PFS).
• Nuton will make a decision on whether to proceed with a Feasibility Study and earn-in for Stage 3 based on the results of Stage 2c.

Key Dates

Keywords

Copper, Mining, Funding, Nuton, Rio Tinto, Yerington, Pre-Feasibility Study, Exploration, Leaching, Nevada