Metals One PLC (AIM:MET1, FRA:HT7, OTCQB:MTOPF), the critical and precious metals developer, has converted $1.8 million of loan notes into a 30% equity stake in Lions Bay Resources, a South African private company targeting a vertically integrated gold business built around a cogeneration plant with a replacement value of $39.6 million.
Lions Bay Resources acquired the cogeneration plant, located in the Karbochem Industrial Park in Newcastle, South Africa, after settling the outstanding $1.36 million balance of the purchase price.
The plant, which was inspected and verified by TerraVista Solutions in October 2025, has three potential revenue streams: electricity generation, steam production and gold roasting.
An estimated $4.5 million of investment is expected to be required to restart steam and power production, subject to receipt of a competent person's report.
Metals One managing director Daniel Maling said the company had secured a 30% interest in an asset that would cost $39.6 million to replicate for a total outlay of $1.8 million, with just $4.5 million required to bring it back into operation.
Lions Bay Resources is also pursuing the acquisition of the Vantage Goldfields assets in the Barberton region of South Africa, which include a historical resource inventory of 4.5 million ounces of gold and a central metallurgical complex, along with extensive underground development.
Maling said a creditors' meeting scheduled for next week would determine the path to completing the Vantage acquisition, with a positive outcome expected to unlock the next round of financing discussions.
The remaining equity in Lions Bay Resources is held by Lions Bay Capital, listed on the TSX Venture Exchange, in which Metals One holds a 19.1% stake, and the Salamander Mining management team.