Metals One PLC (AIM:MET1) shares moved lower on Tuesday, after the firm agreed to provide a C$4 million loan to Lions Bay Capital Inc. via a secured promissory note bearing 20% annual interest.
The loan, repayable in 12 months, will support opportunities in gold and critical minerals through Lions Bay’s project portfolio. It is secured against shares in Fidelity Minerals Corp and other Lions Bay holdings. It follows Metals One’s prior C$750,000 equity investment and a separate US$1.8 million convertible loan for a South African joint venture.
"Lions Bay Capital has access under its umbrella to two of the most compelling precious and critical minerals opportunities we have seen for a long time. Through advancing the Loan, Metals One, can enable Lions Bay Capital to unlock these opportunities without delay and create significant value for its shareholders including Metals One," said managing director Daniel Maling.
In London, Metals One was down 4.4% changing hands at 1.81p, with the shares trading between 1.7p and 1.95p through the morning session.