Metals One PLC (AIM:MET1) announced a new strategic investment, acquiring a 19.1% stake in TSX Venture-listed Lions Bay Capital, which plans to refurbish a South African gold processing plant.
It is investing C$750,000, buying 7.5 million Lions Bay shares.
"We believe the Lions Bay's gold processing plant in South Africa offers exceptionally attractive economics," said chief executive Craig Moulton.
"The near-term cash flow opportunity complements our earlier stage critical metals exploration projects, balancing Metals One's asset base. With a market capitalisation of under C$4 million and a portfolio of other projects, we regard this as a highly opportunistic investment."
Metals One noted that Lions Bay's plant previously shut down in 2021, and it's expected to be brought back into production before the end of next year.
The plant has capacity to roast about 5,000 tonnes of concentrate per month, providing an alternative processing solution to exporting gold-bearing concentrate to Asian smelters.
It has an option to acquire the plant for US$1.40 million, and is commissioning a Competent Persons Report expected in October. Longer-term plans include sourcing feed from small mines and acquiring additional gold assets in the Barberton region.