Lion Selection Group Limited (ASX:LSX), an investment company focused on backing mineral exploration and development entities, has announced a commitment to invest $2 million in Arika Resources Limited (ASX:ARI). This investment forms part of a larger $6.5 million capital raising undertaken by Arika, an advanced gold exploration company with two key projects in Western Australia’s Leonora-Laverton region. The strategic placement, priced at 1.9 cents per share, will see Lion acquire approximately 6.7% of Arika upon successful completion.
Arika’s portfolio boasts two highly prospective gold projects, Kookynie and Yundamindra, both characterised by extensive historic gold workings and limited modern drilling, presenting significant opportunities for new discoveries. At Kookynie, numerous prospects, including the historic Cosmopolitan and Altona mines, have shown high-grade intercepts. The Yundamindra project features two gold trends with historical workings spanning 16km and 10km, where Arika’s drilling has already revealed high-grade gold mineralisation, such as 30 metres at 2.26 grams per tonne gold from Landed at Last and 14 metres at 15.48 grams per tonne gold from Pennyweight Point.
Lion Managing Director Hedley Widdup commented on the investment, stating that Arika possesses “two highly coveted exploration projects in the heart of one of Western Australia’s gold producing districts.” He highlighted the rarity of finding productive historic workings with so little modern exploration. Arika is set to commence its largest-ever drill campaign across both projects, promising near-term technical developments and news flow. This new addition to Lion’s portfolio is designated with a ‘chilli’ for its transformative potential, joining its ‘growth’ subset of companies.
