Metals One PLC (AIM:MET1, FRA:HT7, OTCQB:MTOPF), the critical and precious metals developer, has finalised a first-phase mine plan for the Barbrook gold project in South Africa, targeting first gold concentrate within six months.
The company said the phased restart would use the processing plant and infrastructure already in place at the site in Mpumalanga province.
Metals One holds a 30% interest in Lions Bay Resources (LBR), the vehicle behind the project, with an option to increase that stake by a further 19.99%.
LBR has also signed an offtake contract with a global trading company covering 100% of Barbrook's gold concentrate over an initial three-year term.
The agreement, concluded on 25 July, removes much of the risk around selling early production and supports the case for the mine plan, the company said.
Phased restart
Barbrook sits in the Barberton Greenstone Belt and holds a historical underground resource of about 2.1 million ounces, alongside surface material, a processing plant and tailings facilities.
The first phase will treat tailings and surface oxide material through the existing plant to produce a saleable gold concentrate within six months.
A second phase, targeted for twelve to eighteen months, would recommission underground infrastructure, while a third would assess further underground mines through a feasibility study.
Minxcon has been appointed to prepare a competent person's report to Canadian NI 43-101 standard, with the final document due in October.
The plan still faces court action from Goldstream, a creditor of Barbrook, which is seeking to remove the business rescue practitioner and set aside the rescue plan.
Two applications are listed for hearing on 3 September and 12 October.
Metals One said all previous challenges had been defeated with costs awarded against the claimants, though it acknowledged a small remaining risk to closing the plan.
Transaction progress
The rescue plan has been substantially implemented, with an application to transfer the mining rights to LBR submitted to South African authorities.
The wider deal is structured as a reverse takeover under which Lions Bay Capital, a Toronto-listed investor, would acquire all of LBR.
Trading in Lions Bay shares is expected to remain halted until all applicable exchange requirements have been satisfied.
Shareholder circulars for both companies are now being drafted, with completion still subject to funding, regulatory and shareholder approvals.
Daniel Maling, managing director of Metals One, said the finalised plan and offtake deal marked the point at which Barbrook moved from a transaction into a viable commercial operation.
