Lion Selection Group Limited (ASX:LSX), an investment company focused on the resources sector, has announced the successful sale of its shareholding in Erdene Resource Development Corp (TSX:ERD) for approximately A$12.3 million. Lion initially invested in Erdene in 2012, with a total cost of A$2.8 million. According to the company, this sale marks a substantial return and reduces the size of Lion’s legacy portfolio, which includes investments made before Lion’s focus shifted to Australian opportunities.
Managing Director Hedley Widdup stated that Erdene has been a rewarding investment. He also added that the funds will bolster the company’s investing capacity. He also noted the company has enough franking credits to pay a fully franked dividend for the first time in years. Lion invested in Erdene to back a team exploring for base and precious metals deposits in Mongolia, leading to two mineral discoveries and a new mine development at Bayan Khundii. Lion is exiting now that Erdene has matured as an investment and liquidity has emerged.
Following the sale, Lion intends to distribute some of the surplus funds to shareholders via a fully franked special dividend of 2 cents per share. The company’s proforma cash position at 31 July 2025, after the Erdene proceeds and payment of dividend, is A$50.3M. Lion’s existing net cash was A$40.9M at 31 July 2025. The company aims to pay sustainable dividends from surplus investment proceeds, balancing investment requirements with market conditions and capital growth.
The special dividend will be paid to shareholders who are on the register as of the Record Date of 2 September 2025, with payment scheduled for 17 September 2025.
