Lions Bay Resources has rejected a claim by Vantage Goldfields that its proposed acquisition of the Barbrook gold mine in South Africa has failed, describing the statement as false and misleading.
The company is owned by Metals One PLC (AIM:MET1, FRA:HT7, OTCQB:MTOPF), the AIM-listed mining company, and Lions Bay Capital, which trades on the TSX Venture Exchange.
Vantage said on 25 August that confirmation from the South African mining regulator meant Lions Bay could not secure approval for the deal.
Lions Bay countered that the regulator had deferred its decision rather than rejected it, and that the rescue process remained on track.
The Department of Mineral and Petroleum Resources said in a letter dated 18 August that it would delay ruling on the required mining consent.
That determination will wait until 20 business days after a High Court judgement on an application to set aside Lions Bay's rescue plan.
The court is due to hear that application on 12 October, with an earlier hearing on 3 September to remove the business rescue practitioner.
Lions Bay agreed to buy the mining right and assets of Barbrook in March, subject to funding and regulatory conditions.
Those conditions included the funding deposit, approval of the rescue plan, the mining consent, and settlement of the two court applications.
The company transferred $10 million into the practitioner's trust account in April, and creditors representing 84% of claims approved its rescue plan the same month.
Its consent application, lodged in May, included proof of funding and the tribal landowner's written consent to operate on its land.
Lions Bay said its application demonstrated funding beyond the $10 million lodged, and that Metals One and Lions Bay Capital were continuing to discuss the funding structure with shareholders.
Lions Bay said it continued to implement the rescue plan while awaiting the court's judgement.
