Lion Selection Group (ASX:LSX) said it will invest AU$500,000 in Peregrine Gold (ASX:PGD) via a placement of shares at AU$0.22 per share, to earn a 2.3% stake in the gold, iron ore, and lithium explorer, according to a Thursday filing with the Australian bourse.

Peregrine will issue one free attaching option for every two shares issued, with an exercise price of AU$0.33 and an expiry date of three years from the date of issue, the filing said.

The investment is part of a larger AU$3 million placement undertaken by Peregrine Gold.