Metals One PLC (AIM:MET1, FRA:HT7, OTCQB:MTOPF) announced that a proposed all-stock transaction will lift its expected stake in Lions Bay Capital to 54.3%, consolidating its exposure to a listed South African gold and energy platform.
The AIM-listed critical and precious metals investor has entered new conditional heads of terms under which TSX-V-listed Lions Bay Capital would acquire 100% of Lions Bay Resources, including Metals One’s existing 30% holding and option to acquire a further 19.99%.
The company said the proposed deal implies an initial market equity valuation of about C$27.83 million, or £14.83 million, for its Lions Bay ownership, compared with total net investments in Lions Bay and Lions Bay Resources of around C$8.25 million, or £4.40 million. That would represent an unrealised gain on investments of 237%, subject to completion and audit.
Lions Bay Resources was established to build an integrated South African gold and energy business by acquiring and restarting the Barbrook/Vantage gold assets out of business rescue, while using recently purchased KC Energy cogeneration assets to support lower-cost and more reliable power for mining operations.
Metals One would also receive 16.9 million Fidelity Minerals shares from Lions Bay as partial debt repayment, increasing its Fidelity holding to 40.5%. Fidelity is advancing the Las Huaquillas gold, copper and silver project in northern Peru.
