Lions Bay Announces Further Implementation of South African Gold Strategy

Executive Summary

• Lions Bay Capital Inc. increased its loan facility with Metals One plc from CAD $4.0 M to CAD $10.0 M, providing additional capital for the acquisition of Vantage Goldfields assets and general working‑capital needs.
• Metals One will convert USD $1.8 M of its loan into equity, raising its ownership in Lions Bay Resources (LBR) to 30% while LBI and Salamander each fall to 35%.
• LBR has reached a preliminary agreement with the Business Rescue Practitioner of Vantage Goldfields for the purchase of those assets and is proceeding with the acquisition of a cogeneration plant in Newcastle, South Africa.

Key Details

• Loan Facility Increase: CAD $10.0 M total facility (up from CAD $4.0 M). Interest at 20% per annum, passed on to LBR.
• Security Package: First‑ranking fixed and floating charges over LBI’s assets—including 16,926,506 FMN common shares, LBR ordinary shares, loan accounts, US$2.2 M debt from GNT Mining, and LBR bank account rights—as well as first‑ranking charges over LBR’s assets (bank accounts, Vantage tailings).
• Related Party Transaction: Metals One, an insider, will convert USD $1.8 M of convertible loan notes into LBR shares, increasing its stake to 30% and reducing LBI/Salamander each to 35%.
• Vantage Goldfields Acquisition: Preliminary agreement reached; final plan expected imminently. Vantage holds mining leases in Barberton with a historic resource of ~4.5 M oz Au (historical only).
• Cogeneration Plant Purchase: LBR will acquire a fluidised‑bed cogeneration plant for USD $1.36 M; plant valued at USD $39.6 M (replacement cost). Specifications include 2 × 30 TPH Thermax boilers, 6 MW GE‑Triveni turbine, and associated infrastructure. Estimated additional investment of USD $4.5 M required to restart steam/power production.
• Potential Revenue Streams: Electricity generation, steam sales, and a gold concentrate roasting complex (subject to competent‑person report).
• Strategic Synergies: Plant could supply power to Vantage mines via South Africa’s wheeling charge system, mitigating load‑shedding risks and high power costs.

Notable Quotes

(No direct quotes were provided in the release.)