PT Merdeka Copper Gold tbk (Merdeka) will become Lion's joint venture partner in the Pani Joint Venture (Pani JV) after agreeing to pay USD 55 million cash to buy a 66.6% joint venture interest from Lion's existing joint venture partner. The purchase price paid by Merdeka imputes a look through value of AUD 39 million for Lion's 33.3% interest. Lion intends to adopt this revised valuation for its net tangible asset (NTA) disclosures, uplifting Lion's 33.3% Pani Joint Venture interest to AUD 39 million compared with the previous value of AUD 16.9 million in Lion's most recent NTA.

The pro forma September 2018 NTA backing based on the above implied valuation is 43 cents per share.