Business
Lions Bay Capital Inc. Provides Update on Proposed Acquisition of South African Gold Interest and Potential Funding
Vancouver, British Columbia--(Newsfile Corp. - October 22, 2020) -   Lions Bay Capital I...
About this update from Lions Bay Capital, Inc.
[{"type":"text","content":"Lions Bay Capital Inc. Provides Update on Proposed Acquisition of South African Gold Interest and Potential FundingVancouver, British Columbia--(Newsfile Corp. - October 22, 2020) -  Lions Bay Capital Inc. (TSXV: LBI) (\"Lions Bay\" or the \"Company\") announces that further to the news releases on September 14, 2020 and October 18, 2020, the Salamander Mining International Limited (\"Salamander\") proposal to acquire a group of gold assets in South Africa currently under the control of a Business Rescue Practitioner is being reviewed by the creditors for consideration. As part of the agreement with Salamander, Lions Bay will have the right to acquire up to a 50 per cent interest in any assets acquired by Salamander. Lions Bay has been mandated to arrange the funding required to acquire and restart the mines, which is anticipated to be approximately USD $5.0 million over 6 months. Lions Bay has negotiated indicative terms with a funding partner that covers up to USD $4.0 million of the USD $5.0 million required. The proposed terms establish a USD $2.0 million loan facility with an initial drawdown of USD $1.2 million available upon execution of a definitive agreement and regulatory approval and a second tranche of USD $0.8 million available for further drawdown. The loan facility would be secured by the Company's investment portfolio and be convertible into the common shares of Lions Bay, incur interest at 12% per annum and would require Lions Bay to issue warrants to the lender. As previously advised, Salamander has made an offer to acquire a group of gold assets in South Africa. Any offer will ultimately require support from various parties and could result in protracted legal action. There is no certainty that Salamander will be successful in its endeavors and there are a number of potential outcomes. In addition, any definitive agreements will be subject to TSX-V approval. About Lions Bay Capital Inc.Lions Bay Capital Inc. is a TSX-V listed Investment Issuer that is focused on high return investment opportunities, principally in the mining, clean energy and clean technology sectors, where it provides public and private companies with strategic and financial support. On behalf of the Board of Lions Bay. John Byrne Executive Chairman Tel: +61 3 9236 2800Email: [email protected] more information, please visit t...