Lions Bay awaits court ruling on Vantage assets

Executive Summary

• Lions Bay Capital’s 47.4%-owned associate, Lions Bay Resources Pty. Ltd. (LBR), has extended its option to acquire a co-generation power plant in South Africa to February 28, 2026, paying an additional $10,000 USD.
• LBR is actively pursuing the acquisition of Vantage Goldfields Ltd. and associated mines (Makhonjwaan Imperial Mines and Barbrook Mines) currently in business rescue, with a High Court hearing scheduled for March 2, 2026, to consider final proposals.
• The company highlights a strategic opportunity to modify the acquired power plant to produce power and treat pyritic gold concentrates, aiming to create a vertically integrated gold business with dual revenue streams.

Key Details

• Power Plant Option Extension:

  • LBR entered into an agreement on Jan. 27, 2026, extending the option to purchase a co-generation power plant in KwaZulu-Natal, South Africa, to Feb. 28, 2026.
  • This is the second extension; LBR paid $10,000 USD for this extension, credited toward the total purchase price.
  • Total paid to date: $85,000 USD.
  • Remaining balance payable upon exercise: $1,305,000 USD.
  • Plant Details: Constructed/commissioned in 2020 at an original cost of ~$19.4 million USD. Capable of producing electricity and steam. Operated for one year before care and maintenance in 2021.
  • Intended Use: Modify the plant to support roasting and recovery of gold from concentrate.

• Vantage Goldfields Acquisition Bid:

  • LBR (owned 47.4% by Lions Bay, 47.6% by management, 5% by Metals One PLC) made an offer to acquire assets of Vantage Goldfields, Makhonjwaan Imperial Mines, and Barbrook Mines.
  • Consideration: Cash and shares to be issued to creditors in both Metals One and Lions Bay, plus rehabilitation undertakings (specifically flooding of the Lily mine).
  • Context: Offer follows the collapse of a prior plan by Ultra Concepts Ltd. and a liquidation application.
  • Legal Status: Business rescue practitioner elected not to put LBR offer to creditors initially; however, on Jan. 28, 2026, the practitioner advised the High Court he was entertaining other offers.
  • Court Hearing: Final hearing set for March 2, 2026. Deadlines for answers, replying affidavits, and heads of argument are set.
  • LBR Position: Has paid security costs for the past five months and argues its plan has de facto been implemented.

Notable Quotes

• "Lions Bay continues to play an active role in moving LBR's bid for the Vantage assets forward. In parallel, we have a great opportunity with the co-generation power plant due to the potential to modify the plant to produce power and treat pyritic gold concentrates, providing a dual revenue stream as we move to create a vertically integrated gold business in South Africa." — John Byrne, Chairman of Lions Bay Capital