Metals One Expands Global Gold Exposure with Investment in Lions Bay Capital

Metals One (LON: MET1) is broadening its portfolio with a C$750,000 investment in Lions Bay Capital, a Canadian mining finance and investment company focused on resource assets, particularly gold and copper.

The investment secures Metals One a 19.1% stake in Lions Bay, achieved through the subscription of 7,500,000 common shares. The first tranche has been settled, with the remainder expected to be settled shortly, upon TSX-V approval.

Lions Bay's primary goal is to bring a South African gold processing plant back into production by Q4 2026, contingent on funding.

This positions the company to generate near-term cash flow. Lions Bay holds an option to acquire a cogeneration power plant for US$1.4 million, which previously cost approximately US$20 million to commission.

The refurbishment and modification of the plant will enable it to process around 5,000 tonnes of auriferous concentrate monthly, providing an alternative to exporting gold-bearing concentrate to Asian smelters.

The plant uses a roasting process to combust the ore concentrate, exposing the gold for conventional extraction. The power infrastructure is designed to generate about 12 MW of continuous power.

A Competent Persons Report (CPR) is expected to be completed in October 2025. Lions Bay intends to negotiate feed supply agreements following the completion of the CPR and has identified small, licensed gold mines in South Africa that would benefit from a local processing solution.

Long-term, Lions Bay plans to leverage the plant and its revenue to acquire gold mines in the Barberton region of South Africa. This area is rich in gold deposits within pyrite, a refractory ore that requires roasting to liberate the gold before smelting.

Metals One's investment allows it to benefit from Lions Bay's potential gold acquisitions and existing portfolio, which includes interests in Fidelity Minerals (45.22%), Epic Minerals (50%), KALiNA Power (3.07%), a debt loan to GNT Mining (owner of the Bosveld gold mine), and Greensands Australia (42%).

Lions Bay is led by Executive Chairman John Byrne, known for his success at Western Canadian Coal. In the year ending May 31, 2024, Lions Bay reported a pre-tax loss of C$2,990,000 on nil revenue and net assets of C$3,584,000. All Units will be subject to statutory hold periods expiring 29 December 2025.

Craig Moulton, Chair of Metals One, stated, “We believe the Lions Bay's gold processing plant in South Africa offers exceptionally attractive economics. The near-term cash flow opportunity complements our earlier stage critical metals exploration projects, balancing Metals One's asset base.

“With a market capitalisation of under C$4 million and a portfolio of other projects, we regard this as a highly opportunistic investment.”