UK's Metals One Plans £6.5 Million Acquisition of South African Mining Company Stake

en.Wedoany.com Reported - On October 22, UK mining investment company Metals One announced that it has signed binding acquisition term sheets with Canada's Lions Bay Capital, Salamander Consulting, and South Africa's Lions Bay Resources (LBR) to acquire the remaining 50.01% stake in LBR through a share exchange, with a transaction consideration of £6.5 million. Upon completion of the exercise of existing equity options and the subsequent acquisition, Metals One will hold 100% of LBR's equity, gaining control of its South African gold mining and supporting energy assets.

Under the latest transaction arrangement, Metals One plans to first convert US$5 million of its existing loan claims into LBR shares, increasing its shareholding from 30% to 49.99%; it will then acquire 25.005% stakes from Lions Bay Capital and Salamander Consulting respectively, with each transaction valued at £3.25 million. The two acquisitions will together involve the issuance of 500 million new Metals One shares at 1.3 pence per share, accompanied by 125 million warrants exercisable at 3 pence per share with a three-year validity period. The company also plans to provide up to US$15 million in additional financing to LBR to support the acquisition of the Barbrook gold mine assets in South Africa.

LBR is progressing with the acquisition of the Barbrook gold mine located in Mpumalanga Province, South Africa. The mine has an existing processing plant and supporting infrastructure, with a historical resource estimate of approximately 2.1 million ounces of gold as of 2015. Metals One plans to use the existing facilities to resume production in phases, with the goal of commencing initial gold concentrate production within six months. This historical resource estimate has not yet been confirmed by the company as a current compliant mineral resource.

LBR also holds a cogeneration facility located in Newcastle, South Africa, equipped with a 6 MW steam turbine, with an independently assessed replacement value of US$39.6 million. Metals One is evaluating the use of this facility to meet part of the Barbrook gold mine's electricity needs. The company also plans to appoint Graham Briggs, former Chief Executive Officer of South Africa's Harmony Gold, as Chairman of the Board upon completion of the acquisition.

This arrangement replaces the June 2026 proposal announced for Lions Bay Capital to acquire all of LBR's equity. The parties plan to complete the formal agreement documentation within 90 days, subject to obtaining relevant shareholder and regulatory approvals, as well as completing financial audits, mining technical due diligence, and the business rescue proceedings for the Barbrook gold mine. The company is currently still awaiting the final ruling of the relevant South African court litigation.