Metals One (MET1) will invest C$750,000 in Lions Bay Capital (TSX-V:LBI) through the purchase of 7,500,000 shares, acquiring a 19.1% stake. The first tranche of 3,525,000 shares has settled, with the remaining 3,975,000 shares expected to settle shortly.
Lions Bay plans to bring a South African gold processing plant and supporting energy infrastructure into production by Q4 2026, targeting near-term cash flow. It holds an option until November 2025 to acquire the cogeneration plant for US$1.4 million; the facility cost about US$20 million to commission and was shut in 2021 after under 18 months of operation.
The plant is designed to roast about 5,000 tonnes of auriferous concentrate per month, providing an alternative to exporting gold-bearing concentrate to Asian smelters. Roasting exposes gold in sulphides for conventional extraction, while the power infrastructure is designed to generate around 12 MW continuously.
A Competent Persons Report (CPR) was commissioned last week and is expected in October 2025. Lions Bay plans to negotiate concentrate feed supply after the CPR and has identified small, licensed South African gold mines that could benefit from a domestic processing solution.
Longer term, Lions Bay aims to use plant ownership and revenues to acquire gold mines in the Barberton region of South Africa. The area hosts refractory pyrite-rich ore that typically requires roasting before smelting.
Metals One also gains exposure to Lions Bay’s broader portfolio, including Fidelity Minerals (45.22%), Epic Minerals (50%), KALiNA Power (about 3.07%), a debt loan to GNT Mining which owns the Bosveld gold mine with a 60,000 tonnes per annum carbon-in-pulp (CIP) plant operating as a toll facility, and Greensands Australia (42%).
Led by a team with a track record of value creation, Lions Bay is guided by Executive Chairman John Byrne, the architect and former Executive Chairman of Western Canadian Coal, which had an initial market capitalisation of C$50m when he started, and was sold for over C$3 billion in 2010.
“We believe the Lions Bay's gold processing plant in South Africa offers exceptionally attractive economics.” said Metals One’s Chair Craig Moulton.
“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.”
View from Vox
This deal broadens Metals One’s gold exposure with a sizable 19.1% stake and a clear route to potential cash flow if Lions Bay executes on the plant restart. The low starting valuation at Lions Bay adds upside, while timelines, funding, and execution at the processing plant remain the key swing factors.