Lion Selection Group has committed $0.5 million to Peregrine Gold’s $3 million placement, gaining a foothold in promising Pilbara gold and iron ore projects with significant exploration upside.
- Lion invests $0.5M in Peregrine Gold’s $3M placement at 22c per share
- Investment grants Lion a 2.3% stake and free attaching options
- Peregrine’s Pilbara projects include early-stage gold and large channel iron deposits
- Surface sampling indicates high-grade gold and iron ore potential
- Lion sees diversification and growth opportunity through resource discovery
Lion’s Strategic Entry into Peregrine Gold
Lion Selection Group Limited (ASX – LSX) has announced a $0.5 million investment in Peregrine Gold (ASX – PGD), participating in a $3 million capital raising at 22 cents per share. This move secures Lion a 2.3% shareholding in Peregrine, alongside free attaching options exercisable at 33 cents within three years. The investment signals Lion’s confidence in Peregrine’s exploration prospects in Western Australia’s prolific Pilbara region.
Exploration Focus – Gold and Channel Iron Deposits
Peregrine’s portfolio spans gold, iron ore, and lithium exploration, with a particular emphasis on gold prospects along the Mallina fault corridor near the Hemi deposit and advanced targets west of Newman. Notably, Peregrine has identified two large surface iron ore occurrences interpreted as valley-type channel iron deposits (CIDs), the Coopers CID and Peninsula CID. These have not yet been drilled but have delivered surface sampling results comparable to other significant Pilbara CID projects, suggesting substantial scale potential.
Potential Upside and Portfolio Diversification
Lion Managing Director Hedley Widdup highlighted the strategic rationale behind the investment, emphasizing the value of Peregrine’s well-located iron ore prospects and the opportunity to diversify Lion’s gold-focused portfolio. The large surface footprints of these channel iron deposits, if confirmed through drilling, could represent a significant new resource. Lion’s participation also reflects a broader trend of established explorers seeking exposure to emerging Pilbara projects with multi-commodity potential.
Looking Ahead – Drilling and Discovery
While surface sampling results are encouraging, the true test for Peregrine’s projects lies in forthcoming drilling campaigns. Previous announcements have showcased spectacular visible gold in shallow drilling at the Peninsula prospect, underscoring the potential for high-grade discoveries. Investors will be watching closely as Peregrine advances its exploration programs, with Lion’s investment positioning it to benefit from any significant resource developments.
Bottom Line?
Lion’s calculated investment in Peregrine sets the stage for potential growth as drilling results unfold in the Pilbara.
Questions in the middle?
- Will Peregrine’s drilling confirm the scale and grade of the channel iron deposits?
- How might Lion leverage its new stake to influence Peregrine’s exploration strategy?
- What impact could successful discoveries have on Lion’s broader portfolio and market position?