Metals One (MET1) has provided an update on progress at its Barbrook Gold Mine in South Africa, with the Business Rescue Plan substantially implemented and financing and transaction documentation advancing.
The company said the Phase 1 mine plan has been finalised, with a phased restart targeting first gold concentrate within six months using existing plant and infrastructure. In addition, an offtake agreement has been signed with a global trader covering 100% of gold concentrate for the first three years of production.
The Business Rescue Plan, approved in April 2026, has progressed with the acquisition agreement concluded and an application submitted to South Africa's Department of Mineral and Petroleum Resources for the transfer of the mining rights to Lions Bay Resources (LBR).
Financing is also advancing, with legal documentation underway and LBR expecting the required funding conditions to be closed ahead of Section 11 approval and the finalisation of outstanding litigation.
Meanwhile, Minxcon has been appointed to prepare a Competent Persons Report (CPR) for Barbrook, with the final report expected in October 2026. LBR has also established a presence at the site and is undertaking plant clean-up, while work continues on a water user licence and engineering for the re-establishment of the tailings storage facility.
Barbrook, located in the Barberton Greenstone Belt, covers 2,286 hectares and includes a historical underground gold resource of about 2.1 million ounces, alongside surface oxidised and refractory material, an existing processing plant, tailings facilities and supporting infrastructure.
Metals One holds a 19.1% interest in Lions Bay Capital, which is proposing to acquire 100% of LBR. Metals One currently holds a 30% interest in LBR, with an option to acquire a further 19.99%.
The proposed transaction is expected to constitute a reverse takeover under TSX Venture Exchange policies, with work progressing on the required readmission documentation and shareholder circulars. Trading in Lions Bay shares is expected to remain halted until the relevant exchange requirements have been met.
Metals One said there remain legal challenges from parties seeking to prevent financial close of the Business Rescue Plan. However, previous court challenges have been defeated with costs, while LBR continues to take steps to mitigate the remaining risk.
Completion of the proposed transaction remains subject to definitive documentation and various shareholder, funding, exchange, regulatory and third-party approvals, as well as Section 11 approval.
View from Vox
The completion of the Phase 1 mine plan and the three-year offtake agreement provide important visibility for the proposed restart of Barbrook. With existing infrastructure in place and financing and regulatory processes progressing, the project is moving towards a potentially near-term return to gold production.