LONDON: Metals One (AIM: MET1, OTCQB: MTOPF) has converted its $1.8 million convertible loan notes into a 30% stake in Lions Bay Resources Pty Ltd (LBR), a privately held South African gold company formed last year, the critical minerals developer said on Tuesday.
The loan notes were fully advanced to LBR, and Metals One has exercised its right to convert them into equity, the company said. LBR is now owned 30% by Metals One, 35% by Lions Bay Capital Inc. (TSX-V: LBI), in which Metals One holds a 19.1% stake, and 35% by the management team of Salamander Mining.
Salamander is led by Non-Executive Chairman Graham Briggs, former CEO of Harmony Gold, South Africa’s largest gold producer, and CEO Lloyd Birrell, founder and former CEO of Theta Gold (ASX:TGM).
LBR has settled a $1.36 million balance to acquire a cogeneration plant at the Karbochem Industrial Park in Newcastle, South Africa. The plant, inspected by TerraVista Solutions in October 2025, has a replacement value of $39.6 million, according to the company.
The facility is expected to generate three revenue streams: electricity production, steam generation, and gold roasting. Subject to a competent person’s report, LBR estimates it will need about $4.5 million in investment to restart steam and power production.
Metals One has signed a shareholders’ agreement with LBR’s owners, including customary provisions such as board appointment rights, pre-emption rights, and unanimous consent requirements on certain matters.
LBR was established in May 2025 and has not yet reported any financial results.
“We are pleased to secure our 30% ownership of LBR on favourable terms,” said Daniel Maling, managing director of Metals One. “The next step is to cement LBR’s plan to acquire the Vantage Goldfields assets in the Barberton region with a historical resource inventory of 4.5 million ounces of gold.”
Maling added that Metals One looks forward to the outcome of a creditors meeting next week regarding the Vantage assets acquisition.