Metals One (MET1 ) has highlighted an announcement from investee company Lions Bay Capital regarding both an offer for all the assets of Vantage Goldfields Ltd by its 47.4%-owned associate Lions Bay Resources Pty, and the extension of an option to acquire the cogeneration plant. 

This follows developments at the end of last year, when LBR, which is owned 47.4% by Lions Bay, 47.6% by its management team, and 5% by Metals One, made an offer to acquire the assets of Vantage Goldfields Ltd, Makhonjwaan Imperial Mines Ltd and Barbrook Mines Ltd, all in business rescue. 

This offer comprised cash and shares to be issued to creditors in both Metals One and Lions Bay, as well as certain rehabilitation undertakings, in particular relating to the flooding of the Lily mine. 

This offer was predicated upon the collapse of a prior business rescue plan, put forward by Ultra Concepts Limited, and in the face of a liquidation application of the group. The business rescue practitioner elected not to put the LBR offer to creditors, and on the return date of the liquidation application, which was heard on 28 January 28 2026 in the High Court of South Africa, advised the court that he was entertaining other offers, none of which were disclosed. In the interim, a further intervening application to remove the business rescue practitioner has been brought by a creditor, namely Goldstream (Pty) Ltd. 

Accordingly, the business rescue process for Vantage Goldfields is ongoing. 

The High Court of South Africa is due to meet on 2nd March 2026 to consider final proposals from the Business Rescue Practitioner, including the offer made by Lions Bay Resources Pty, and other interested parties.

LBR has paid the security costs of the Vantage assets for the past five months, and is of the view its plan has de facto been implemented, and will argue this in court.

Furthermore, LBR representatives are actively engaging with the local community, regulatory bodies, and various stakeholders to help facilitate and agree a plan to finance the safe and timely reopening of the mining operations.

LBR has now entered into an agreement to extend the expiry date of its option to purchase a cogeneration power plant to February 28, 2026.

This represents the second extension of the option. LBR has paid US$10,000 for each extension, with these amounts credited toward the total purchase price. To date, LBR has paid an aggregate of US$85,000, with US$1,305,000 remaining payable upon exercise of the option prior to expiry.

LBR holds the option to acquire a cogeneration power plant located in KwaZulu‑Natal, South Africa, which it intends to modify to support the roasting and recovery of gold from concentrate.

The plant is capable of producing both electricity and steam and was constructed and commissioned in 2020 at an original cost of approximately US$19.4 million. The facility operated for approximately one year before being placed on care and maintenance in 2021.

LBR now expects to finalise the CPR and leaseholder negotiations relating to its cogeneration power plant in the coming weeks and has, by mutual agreement, extended the option to acquire the plant to the end of February 2026.

"Metals One is encouraged by the progress of the Vantage offer which remains in play and the broader strategy to create a vertically integrated South African gold business,” said Daniel Maling, managing director of Metals One.

 

View from Vox

 

It’s a complex situation to be embroiled in, but the outcome could be extremely favourable to Lions Bay, and by extension Metals One. The opportunity is to create a vertically-integrated gold producer in one of the world’s great mining jurisdiction, using assets with a far higher replacement value than Lions Bay is likely to pay. There is much to play for.