Shares in Metals One PLC (AIM:MET1, FRA:HT7, OTCQB:MTOPF) rose 7% to 1.87p after the company announced a £1.5 million fundraise and an option to lift its stake in South African gold vehicle Lions Bay Resources to 49.9%, as it presses ahead with its strategy to build a vertically integrated gold business in the country.
The option allows Metals One to convert $5 million of its existing C$10 million secured loan facility into an additional 19.9% of Lions Bay Resources (LBR), taking its holding from 30% to just under 50%.
The remaining C$3 million of the facility will stay in place under its current terms, keeping Metals One as senior secured creditor to LBR.
LBR was formed last year to create a vertically integrated South African gold operation and currently owns a cogeneration plant in Newcastle, South Africa, with a replacement value of $39.6 million.
The more significant near-term catalyst is LBR's conditional agreement to acquire the Vantage Goldfields assets in the Barberton region, which carry a historical resource inventory of 4.5 million ounces of gold and include a central metallurgical complex and extensive underground development.
The Vantage assets entered business rescue following the Lily mine collapse in 2016 and are subject to a creditor vote on 9 April 2026.
Metals One said it expects to call a shareholder meeting to approve the option exercise once that creditor process concludes.
The fundraise is being completed through a direct subscription with institutional investors at 2p per share, a premium of 8.16% to the prior closing price, with 75 million new shares to be admitted to AIM on or around 9 April.