Business
Lions Bay Capital Inc. Agrees to Acquire South African Gold Assets
Vancouver, British Columbia--(Newsfile Corp. - September 14, 2020) -   Lions Bay Capital...
About this update from Lions Bay Capital, Inc.
[{"type":"text","content":"Lions Bay Capital Inc. Agrees to Acquire South African Gold AssetsVancouver, British Columbia--(Newsfile Corp. - September 14, 2020) -  Lions Bay Capital Inc. (TSXV: LBI) (\"Lions Bay\" or the \"Company\") announces that it has entered into a heads of agreement with Salamander Mining International Limited (\"Salamander\") under which LBI will have the right, subject to various conditions, to acquire an interest in a South African gold mine and milling complex. The companies that currently own the mines and mills are under bankruptcy protection and Salamander is a major creditor. Salamander has submitted a proposal to the administrator under which operations would resume and Salamander would acquire the assets. The operations were put into protection following an accident in 2016. The mines were operating profitably at the time at a gold price of USD $1,300 an ounce.Salamander Mining is an unlisted company based in Mauritius. The co-founder and CEO of Salamander, Lloyd Birrell, is a veteran of the South African gold mining industry. Mr Birrell has been a key member of management teams that has successfully acquired, restructured and recommissioned gold assets and restored them to profitability. These include:Ergo (the world's largest tailings operation)Agnes Mines now known as Galaxy MinesTransvaal Gold Mining EstatesBosveld Mines The other co-founder and CFO of Salamander, Deon Robbertze, has more than 20 years of experience at senior management levels including Financial and Commercial Manager at Kumba Base Metals and Chief Financial Officer at Xtrata South Africa (now part of Glencore). Under the heads of agreement, LBI will be mandated to arrange the funding required to acquire and restart the mines. It is anticipated that the amount required over 6 months will be less than USD $5 million. To secure the funding mandate, LBI will be obliged to arrange a USD $1 million loan. This is conditional on Salamander reaching an agreement with the Business Rescue Practitioner and certain other creditors.Lions Bay has been actively seeking gold opportunities over the past six months. During the period it has significantly increased its holding in Fidelity Minerals Corp. (TSX-V: FMN) which has been restructured and holds a number of very promising gold assets in Peru.The executive chairman of Lions Bay, Mr. John Byrne commented: \"Th...