Lion Copper and Gold Corp. announced an amendment to an existing advisory agreement.
The amendment allows for the payment of advisory fees through the issuance of common shares instead of cash.
The amendment, effective from December 1, 2025, maintains the scope and nature of the advisory services.
Lion Copper's decision to amend the advisory agreement reflects a strategic shift in compensation structure to align interests and conserve cash resources for operational needs.
Advisory Agreement Amendment
Lion Copper will now compensate advisory services with common shares, marking a departure from traditional cash payments.
Payment Method Change
Monthly retainers for advisory services will be converted into common shares based on the 10-day volume-weighted average price, fostering a closer tie between advisor performance and company value metrics.
Resale Restrictions
Common shares issued under the amended agreement will adhere to relevant securities laws and resale constraints, ensuring compliance and regulatory adherence.
- The shift towards common shares as advisory fees grants Lion Copper enhanced financial flexibility by reducing cash outflows and facilitating operational cash management.
- By substituting shares for cash, Lion Copper strengthens the alignment of the advisory team's incentives with the company's market performance, potentially enhancing advisor commitment and focus on strategic value creation.
Lion Copper's decision to amend its advisory agreement underscores a strategic move towards innovative compensation structures. Embracing shares over cash not only aligns stakeholder interests but also streamlines cash flow management for essential operational activities. This strategic alignment is poised to fortify long-term relationships and incentivize advisors to contribute directly to Lion Copper's market success.